Quantcast

Greg Kaufmann | The Nation

  •  

Greg Kaufmann

Poverty in America: people, politics and policy.

This Week in Poverty: Fighting Poverty Through Wall Street Accountability


(Photo: Press Association via AP Images)

This year, I’ve been focused on how anti-poverty activists can move from a defensive battle defined by trying to save what needs to be saved during these budget debates, to an offensive one, laying out a vision that inspires ongoing, unified action and builds a vibrant movement that connects with people in their communities.

I offered one modest proposal for an “anti-poverty contract”—five issues that impact both low-income and middle class people—around which activists and groups could organize. The Western Center on Law & Poverty and a handful of other national and local groups are trying to build an effort around that idea.

However, when you consider the scale of the problems we face—and what inspires people to take action—clearly much, much more is needed. As I wrote previously, to build a new anti-poverty movement will require the kind of organizing and actions that are as creative, visible and gripping as the Occupy Wall Street movement.

Enter Stephen Lerner.

Lerner is a labor and community organizer who has spent more than three decades organizing hundreds of thousands of janitors, farm workers, garment workers and other low-wage workers into unions. These efforts resulted in increased wages, first-time health benefits, paid sick days and other improvements on the job. The architect of the historic Justice for Janitors campaign, he is currently working with unions and community groups across the country to break Wall Street’s anti-democratic grip on our politics and our economy.

Lerner lays out a powerful case about the intersection between poverty and Wall Street accountability—and how a Wall Street accountability movement can transform an economy that offers so few pathways out of poverty, and so many ways to keep people impoverished.

Here is our conversation:

Greg Kaufmann: Why is the Wall Street accountability movement now the focus of your work, and what is the potential you see there?

Stephen Lerner: One of the challenges is that there are so many things wrong right now—that you can be involved in any of a thousand causes. The problem is if they are disconnected it doesn’t add up to anything. So, people who are opposed to poverty have a dozen different things they’d like to move on the Hill, none of which are likely to pass at this time.

So the focus on Wall Street is: How do you connect all of these different battles? And, in fact, are there core things in common that drive them together?

If you look at some of the biggest issues of the day—whether it’s the loss of wealth in communities of color, the housing crisis, the student debt crisis, local and state governments cutting jobs and services because of debt—you can connect all of these issues to the original economic crisis of 2008, and the growing and continued dominance of the Wall Street big banks.

The majority of people in this country are either impacted by student debt, the ongoing housing crisis or the crisis of the public sector. And you can trace so much of it to Wall Street. This means instead of having twenty separate campaigns, you can have one campaign, that says how do we rebalance and reorganize the economy so that it benefits everybody—not just a teeny elite at the top.

How does the effort to address these three issues intersect with the fight against poverty in particular?

Let’s start with housing. In this country, for many workers and people of color, wealth isn’t in the stock market, or the Cayman Islands—it’s in a home. And the banks first preyed on folks through subprime loans pre-crisis, making enormous profits while putting people in danger. Then when the bubble burst, millions of people lost their homes, and those who didn’t have had outrageous payments because the subprime loans exploded. Now you still have 13 million families that are underwater—owing more on their loans than their homes are worth.

In Latino communities, 66 percent of their wealth was lost, half as a result of housing. In the African-American community, it was 53 percent. Fifty years of the gains of the civil rights movement and the expansion of the economy were wiped out overnight, pushing millions into poverty. If you add to that the people who are unemployed as a result of the crashed economy—we just have this strange thing that happened: the banks created a disaster, and economists and politicians said, “That’s terrible for the economy, let’s give them trillions.” And then the folks who were actually hit the hardest were forced into poverty.

On student debt: funding to public education was dramatically cut, which obviously hurts poor people and workers the most. As it was cut, people had to take out loans. So 37 million people have now run up a trillion dollars in student debt. It’s a burden no matter what, but if you come from a family that doesn’t have means, you now graduate from school with a crushing debt burden, and then there aren’t jobs available. And there’s a vicious cycle: you cut the budget of public universities, to give tax breaks to banks and big companies, who respond by creating toxic loan packages for students that they make a profit on. And because public funding of universities has been cut—the schools need to borrow more money in order to operate and build, so the banks get a piece of that action, too. And now university endowments are investing in Sallie Mae—the largest private student loan lender—so students have to take out loans to go to school, and the university endowment profits off those loans.

There are much better ways to fund education—like by [publicly] funding education so people can actually afford it, instead of creating these twenty layers that let Wall Street suck money out at every step.

So individuals and families are getting crushed by housing and education debt, and then you say public debt completes a sort of perfect storm?

That’s right, what we call predatory public loans. So three things have happened: Wall Street has taken advantage of the desperation of cities and municipalities since the crisis; the deals are so complex that public entities don’t know what they are getting into; and third is that Wall Street gets its money at a subsidized, Too Big to Fail rate, and in the case of the discount window, almost for free. Banks get money at .075 percent interest from the Federal Reserve, and they then create all sorts of ways to make more and more money off the spread, from the public sector.

Please support our journalism. Get a digital subscription for just $9.50!

Take interest rate swaps, for example. On the surface it sounds like not a bad idea—a bank says they will protect a city from a fluctuating interest rate by locking it in at, say, 4 percent. If it goes higher, they eat it. And if it goes lower, they make money. But they then add so many different formulas and traps, that all of a sudden when the whole thing blew up during the crisis and a city is hemorrhaging money, and they want to get out of it, it turns out that they have an exit fee that’s extraordinary and they can’t afford it. In Detroit, the city had to pay around $470 million on a series of bond and interrelated swap deals gone bad at the same time they were laying off police and firemen. So then you end up in fights like, “Do we help the poor, or do we take workers that are middle class and cut their wages so they’ll be poor?”

Describe what this movement looks like—what are some of the asks and how do you see it potentially playing out?

There are multiple levels of how Wall Street is impoverishing the country, and so different people can engage in different ways.

On housing, in Atlanta, Minneapolis, all over California—one piece is the Home Defenders League and Occupy Our Homes. This involves physical encampments, blockading the police and saying you’re not going to take my home, or my neighbor’s home. It’s incredibly vibrant, street-level resistance—and it’s often successful. And as folks are successful, it grows. This is all nonviolent, and involves people who are willing to go to jail.

If you take it up a level, there is a simple policy demand, which is that banks should reduce principal on homes to current market value. That means if you’re paying a $300,000 mortgage on a home that’s worth $200,000, the bank should rewrite it to that value. If we did that, it would save $700 billion to $1 trillion—that’s how much people are underwater—and generate $101 billion in economic activity, create 1.5 million jobs, and the average underwater homeowner would save $7,700 a year.

There are cities all over the country that are now exploring using eminent domain to seize these underwater mortgages and rewrite them with principal reductions. For years eminent domain was the tool to take advantage of poor people—tear up a neighborhood, build a highway, build a stadium and tell people they will be paid what their homes are worth on the open market. They said it was for the public good, even as it devastated once stable neighborhoods. We’re saying let’s flip that on it’s head—for the public good, let’s seize these mortgages and rewrite them at current market value so people can stay in their homes.

On student debt, there is a gamut of activity ranging from student activism on campuses, to state and local legislation, to sit-ins at the Sallie Mae shareholders meeting, to challenging the Education Department on why they have as contractors like Sallie Mae that are profiting off this disaster. The movement includes Senator Elizabeth Warren’s brilliant bill to give students loans at the same rate we give to banks. Why should banks get money cheap and student loans be more expensive? And it includes people on their college campuses—a movement around Big Banks Off Campus—because the banks shouldn’t be allowed to come on campus and sell their credit cards and figure out new ways to indebt students.

Finally, on public debt, people are fighting back. In the case of Oregon, SEIU Local 503 calculated that the state lost $110 million because of the LIBOR manipulations. So here’s what happens: the SEIU public sector union goes in to negotiate with the state representing public employees, and the state says we want to cut all of these services for poor people. And the workers themselves are often poor—homecare workers who haven’t had a raise in six years. The state says there is no money. And how do you argue if there’s no money? Except that the money was stolen! And so the movement is changing the debate. This is not about: Are public employees overpaid? Are their too many benefits for poor people? Should we have pre-K or not? There are incredible sums of money out there, but we’ve devised a system that drains it from the bottom to the top. Why don’t we cut out the middleman? Like let’s have an infrastructure bank and loan the money at cost. Let’s figure out a way so banks can’t make more than a certain amount of money on the spread. And I know that gives the free-market people heart attacks, because this is intervening in the market, but there is no market. Because five banks control it, and where they get their money is from taxpayers. It’s our money.

To what extent are these three threads—on student debt, housing debt and public debt—coalescing into a movement so they aren’t the kind of independent, divided struggles that you suggest hold us back from big victories?

As the campaigns develop, the overlap happens more and more. For example, people are seeing the relationship between housing debt and student debt—needing to take out student loans because your family’s house isn’t worth anything anymore so you can’t help finance an education through a second mortgage like you might have in the past. At the Wells Fargo meeting at Salt Lake City, folks campaigning about student debt showed up, and so did people campaigning on housing, and so did people about the environment. So, on an organic level on the street, people are seeing it more and more.

After I covered the actions at the Wells Fargo shareholders meeting, a progressive friend and writer told me, “The activists seem to think banks can’t ignore their message, that being heard is equivalent to making change.” How do you think a movement like this actually could make principal reduction, for example, a reality?

First, the enemy of change is the notion that if you are not winning at that moment then you are losing. These things never have an even flow. It’s not like you start one day, you have steady escalation—they go up and down. In Taylor Branch’s book At Canaan’s Edge, you read these transcripts of FBI wiretaps on civil rights leaders and it’s them saying, “We’re losing”… or “so and so was killed”… or “we have in-fighting, how will we win?” But when we look back at that period now, we see that the civil rights bill was going to pass, it was all going to happen. I think when you are in the middle of the battle, under siege, you can’t see the forest for the trees.

But your friend’s critique is fair in that we’ve been screaming about the banks for years, and they are more powerful than ever—the top six banks now control 73 percent of the total assets in the US banking sector. However, we’ve started to identify some levers that we think begin to level the playing field. Eminent domain is one example—if you’re not willing to reduce principal, then we’ll use the power of the city to force you to do it. On LIBOR, city after city is investigating whether they can sue to get their money back. Many are exploring, and some have passed, bills that say if banks don’t meet certain standards the cities won’t deal with them anymore. Los Angeles, Oakland, New York, Philadelphia and Pittsburgh have all passed responsible banking ordinances recently.

Also, the banks’ greed and hubris is so great that [there are] new avenues to go after them. So if you look at the litigation that California Attorney General Kamala Harris filed: this is where the banks essentially did the same thing with credit card loans that they did with mortgages—they moved to litigation without accurate documentation to even show that people owed them money. We are seeing more opportunities for growing protest, more litigation and more public policy changes. You even now have Ohio Democratic Senator Sherrod Brown and Louisiana Republican Senator David Vitter working together on a bill to break up the big banks.

Is there a role in this movement for people and organizations that are focused on the Hill?

Petitions can raise important issues and get people involved. Lobbying can be important—but I think what we need to do is connect all of this to an analysis of who the villains are and why the economy is unbalanced. This is not a problem of lack of policy—we have unlimited great policy ideas. This is not a problem of lack of money to fund anti-poverty programs. This is a problem of power. I think people need to accept that there is no real significant economic and political change as long as the finance sector is so dominant. The DC-centric stuff will be far more effective if there is something out there in the rest of the country brewing. If this is just an intellectual policy debate about who has the best idea and who has the best statistics, we’re doomed.

To win—to really make the kinds of structural changes you are talking about—does the public protest need to be as constant and visible, engaging and creative, as Occupy Wall Street?

Yes, we need to get to that. And there is an interesting myth about Occupy that somehow it just emerged out of nowhere. But many of the people who were engaged in it were part of other battles before Occupy Wall Street. The month before Occupy, community groups were doing rallies and sit-ins at banks all over the country. So you never know when things are going to take off. Why did the Vietnam protests take off when they did? Or the civil rights protests? You never know what triggers something to go from dedicated souls to a mass movement.

But your key point is right—the system is currently working for the banks and super-rich. And as long as they feel it’s working we won’t really achieve change. And so some combination of mass disruptive protest—nonviolent—of all sorts of local legislative activity; of a growing change in the narrative. Some mix and match of that has to put the kind of heat on them that makes them feel they have to negotiate over these issues—that they need, for example, to fix mortgages because the alternative is worse. We need to have a better system on student loans, because the alternative is worse. I think that’s really our challenge.

In a recent piece, you suggest that anger is insufficient to sustain a movement—that what keeps people going is love. Can you describe what you mean by that?

There are four things currently that are self-defeating for progressives and labor folks: one, the mantra of progressives is built on “we’re losing, there’s no hope, we’re getting clobbered.” That leads to the slogan of much of the progressive movement, which is “Let’s fight for small, incremental, not particularly important change now.” So what we largely talk about isn’t very inspiring. We talk about stopping cuts—stopping bad—not how we win good things.

The great movements—take the story of Exodus—they didn’t say, “Can the Egyptians whip us less often?” They said, “We’re leaving. We’re outta here. We’re gonna form a new country, a place where we can be free.” Gandhi, South Africa, the civil rights movement—all of these movements were based on this idea that there is something profoundly better that we can fight for. And I think for many of us in America we’ve lost that ability to say we’re engaged in this—not just because we care about principal reduction but because we believe in the richest country on earth we can transform society and redistribute wealth and power. So, we need to have a vision that’s inspiring and not be afraid to be called a little utopian.

Second, we need an analysis, a narrative, of who the bad guys are that are concentrating wealth and power. All of the organizing I was involved with—with the garment workers, the farmworkers and the janitors—they all had an analysis of who really had the power and could fix things, and I think we’ve forgotten how to do that.

Third, we need to think about the strategy and tactics that give us leverage, so this is not simply yelling and screaming. And fourth is about love—which is that people are involved both out of self-interest because they want to make their lives better; but also because they realize their life is better if they help make other lives better.

If you look at the great movements that’s what happens—some combination of vision, analysis, strategy and this deep, deep feeling that by supporting and sacrificing for others—in the labor movement we call it solidarity—you not only transform your own life, but you transform the lives of people around you and in doing that transform how society operates. That’s the roots of how we build what we have to build.

* * *

End “Too Big to Jail”: May 18–23, Washington, DC

If you think what Lerner has to say makes sense, here’s an immediate opportunity to get involved. Next week, families on the front lines of the foreclosure crisis are traveling from across the country to the nation’s capital to make their voices heard.

Their message is simple: five years into the financial crisis, Wall Street has still not been held accountable, and communities are still suffering. In fact, a new report from Alliance for a Just Society, the New Bottom Line and Home Defenders League shows that $192.6 billion in wealth was lost due to the foreclosure crisis in 2012, and this year another 13 million homes are at risk of foreclosure with $221 billion in wealth on the line. (See “Studies/Briefs” below for more information on this report.)

It’s long past time for the administration to prosecute those who violated the law and for the banks to repay individuals, families and communities that continue to suffer losses—beginning with reducing their mortgages to fair market value.

“We can’t have two systems of justice in this country: one for the rich and powerful, where Wall Street criminals are actually rewarded with bailouts and huge bonuses, and another for the rest of us,” said Vivian Richardson, who will be in DC next week after successfully defending her home from foreclosure with the help of members of the Alliance of Californians for Community Empowerment. “These Wall Street banksters stole many homes, and are still committing crimes. It is time for them to be held accountable.”

There will be home-defense and nonviolent, civil disobedience trainings on May 18–19 and a rally and march to the Department of Justice on Monday, May 20. The activists will attempt to meet with Attorney General Eric Holder and are prepared to take direct action if that doesn’t happen—blocking entrances, setting up an Occupy-style encampment, getting arrested and staying in jail.

To participate in the Week of Action, you can RSVP here. To take part in the direct action on May 20, fill out this form.

Online Actions

Wendy’s: Support a fair deal for farmworkers

Tell the Senate to give students the same low interest rates the big banks get

Stand with Milwaukee’s low-wage workers

Young and Unemployed: Tell Bernie Sanders Your Story

End Sequestration Cuts

Tell Congress: Protect Federal Nutrition Programs

Event

Democratizing Wealth and a Sustainable Future—A Conversation with Gar Alperovitz (Wednesday, May 22, 12:15 pm–1:15 pm, New America Foundation, 1899 L Street NW Suite 400, Washington, DC). In his new book, Gar Alperovitz presents a case for democratizing wealth as a foundation for a new and sustainable economy. He offers specific policy ideas for how we might start with a transformation of the banking industry and health care sector. Join the New America Foundation’s Asset Building Program for a vibrant discussion, RSVP here.

DC Housing Authority and People with Disabilities

Jacqueline Young and Latheda Wilson both receive housing vouchers from the DC Housing Authority. Ms. Young’s apartment is too small for her to live with her child, and Ms. Wilson is in an apartment that she says is in substandard condition with mold- and insect-infestation.

Both women have hearing impairments and rely on American Sign Language to communicate—they have limited comprehension of written English. Unfortunately, they say, for years the DC Housing Authority failed to provide sign language interpreters at meetings where critical information regarding rules, regulations and requirements for the rental assistance program was provided, leaving the two women in their current predicaments.

A lawsuit was filed on their behalf by Relman, Dane & Colfax, which litigates civil rights cases in the areas of housing, lending, employment, public accommodations, education and police accountability, and the Legal Aid Society of the District of Columbia. Deaf-REACH, a DC nonprofit advocacy organization, is also a plaintiff.

The complaint alleges that the Housing Authority engaged for years in a pattern of discrimination—promising but not providing interpreters, and canceling appointments due to a lack of interpreters or other effective means of communication.

“The law is very clear and well-established on this issue,” said attorney Megan Cacace of Relman, Dane & Colfax. “Entities like the DC Housing Authority must make their services and programs accessible to people with disabilities and provide sign language interpreters.”

Cacace said Young and Wilson were forced to sit through meetings or presentations without any way of understanding what was being said—or even were denied the opportunity to attend meetings at all—and that they were expected “to communicate through notes and gestures” despite repeated requests for interpreters.

“It’s appalling and unacceptable,” said Cacace.

Richard White, director of Public Affairs and Communications for the Housing Authority, wrote in an e-mail: “As a matter of policy, I’m not going to comment on active litigation. What I will tell you is that DCHA takes its obligations under the Americans with Disabilities Act very seriously. We have policies and procedures in place to accommodate the needs of the disabled in all our operations. We will investigate the claims made and respond to the litigation, through our General Counsel office.”

I look forward to learning about the response and hope that it’s quick, thorough and just. This is the twenty-first century and our nation’s capital, after all. It’s bad enough that we are among the cities with the worst wealth inequality and highest child poverty rates in the country. Can we at least provide basic services for people with disabilities?

“Equality for people with disabilities is an important civil rights issue,” said Cacace. “People like Ms. Young and Ms. Wilson are entitled to, and deserve, equal treatment and respect. This lawsuit seeks to vindicate those rights.”

National Community Action Month

Community Action Agencies (CAAs) are nonprofit private and public organizations with their fingers on the pulse of poverty. They provide direct support for nearly 35 million of the 46.2 million people living in poverty in the United States today.

Each CAA is governed locally and offers programs and services designed to meet a community’s specific needs, including: emergency aid like food pantries and domestic violence counseling, education programs like Head Start and youth mentoring, daycare and job training programs, community economic development, services to military veterans, income management and housing assistance, healthcare clinics, WIC and more.

May is National Community Action Month, a public awareness campaign created by the Community Action Partnership in 1997 to highlight the agencies’ effectiveness in helping America’s low-income people and communities achieve economic security. The CAAs and the people they serve are currently getting hit by sequestration, budget cuts and rising hunger and unemployment, and will hold events to call attention to poverty and economic inequality, and to advocate for their programs as a way to help address these issues.

“While policymakers and hedge fund managers are trying to decide what to do with their Enron refrigerator magnets and their Merrill Lynch shot glasses, Community Action is approaching its fiftieth year of providing bona fide opportunities and economic security for millions of people and families,” said Don Mathis, president and CEO of the Community Action Partnership.

CAAs across the country are hosting poverty symposiums, town hall meetings and other events to raise awareness about poverty-related problems and solutions. Here are just a few of the events:

  • Arizona Community Action Association and Community Action of Northeast Indiana are hosting screenings of A Place at the Table.

  • TRI-CAP in Jasper, Indiana, is hosting a poverty simulation.

  • North Hudson Community Action Corporation in Union City, New Jersey, is hosting a health fair with free dental, blood pressure, cholesterol and diabetes screenings, along with nutrition and health information.

“Our network of more than 1,000 CAAs is focusing on the devastating effects that the severe income and wealth gaps are having on everyone in America, not just the poor,” said Mathis.

For more information, go to the National Community Action Month blog, the Partnership’s website, or follow @CAPartnership and #CommunityActionMonth.

Clips and other resources (compiled with James Cersonsky)

Class Size & Funding Inequity in NY State & NY City,” Bruce Baker

Fast Food Strikes Hitting Fifth City: Milwaukee,” Josh Eidelson

In Wake of West, Texas Explosion, Safety Advocates Recommend Harsher Fines,” Mike Elk

Mother’s Day Edition: Challenges Give Strength,” Equal Voice

Unemployment From a Child’s Perspective,” Julia Isaacs

Unions to Banks: Pay Up,” Sarah Jaffe

The Link Between Mass Incarceration and Voter Turnout,” John Light

Parents to Lawmakers: Protect Child Care, Social Services,” Michael Mello and Brad Wong

Mending factory conditions after Bangladesh,” Harold Meyerson

Welfare fraud investigations perpetuate fraudulent stereotypes,” Monica Peabody

Lift the Millstone of Student Debt That’s Slowing the Economy,” Isaiah J. Poole

The Facts on SNAP: SNAP Is Efficient,” Dottie Rosenbaum

In D.C., parents miss work, lose jobs trying to get child-care subsidy,” Brigid Schulte

Racism Remains Alive and Well,” Patricia Williams

Leaning in With Child Care: A Discussion on Childcare Jobs and the Need for Quality, Affordable Care,” Workforce Strategies Initiative, Aspen Institute [VIDEO]

Congress is Ready to Fight Over Deep Food Stamp Cuts,” George Zornick

Studies/Briefs (summaries written by James Cersonsky)

Enhancing GED Instruction to Prepare Students for College and Careers,” Vanessa Martin and Joseph Broadus, MDRC. In many large cities, students face dropout/pushout rates upwards of 50 percent. Many who drop out pursue the GED, or General Educational Development credential, but too few pass the GED test, and even fewer are prepared to step into college or the workforce. This study assesses an initiative at LaGuardia Community College, the GED Bridge to Health and Business Program, which is designed to help students pass the GED while simultaneously preparing for college and careers. Students in the program receive intensive advising and spend more hours in class than typical GED students. In a randomized evaluation, MDRC finds encouraging results: compared with students who went through traditional GED prep, Bridge students were twice as likely to complete the semester of classes, more than twice as likely to pass the exam and more than three times as likely to enroll in a CUNY school.

Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America,” Ben Henry, Jill Reese and Angel Torres, Alliance for a Just Society. The Great Recession took a racially uneven toll: whereas white median net worth fell by 16 percent between 2005 and 2009, net worth for Latinos dropped 66 percent and blacks 52 percent. As 2012 foreclosure data reveals, the foreclosure crisis has far from abated—particularly for people of color. Overall, foreclosures caused a $192.6 million aggregate drop in wealth in 2012—an average of $1,679 per household—and more than 13 million homes remain underwater and vulnerable to foreclosure. In zip codes with proportions of people of color above the national average (16 percent), the average lost wealth per household was $2,008, and in zip codes with majority people of color, the loss was $2,198. Why the ongoing crisis? While banks have received $8 trillion in federal bailouts and loans, the feds haven’t acted on principal reduction—which would save underwater homeowners an average of $7,710 and stimulate the economy to the tune of 1.5 million jobs. The report offers a slate of proposals for government and banks, including: ensuring that Fannie Mae and Freddie Mac prioritize keeping families in foreclosed homes through rental and buy-back programs; full legal accountability for Wall Street executive and bankers; legislation like the California Homeowner Bill of Rights that protects homeowners from abusive mortgage servicing; local foreclosure mediation programs; and public reporting from mortgage servicers on foreclosures, short sales and principal reductions by race and income.

A Strategic Road-Map,” Academic Pediatric Association, Taskforce on Childhood Poverty. While there’s no vaccine to end child poverty, the APA says, there are clear strategies for combating its causes and effects. The APA’s road map focuses on four categories: raising children out of poverty through raising the minimum wage, increasing access to quality jobs and improving income and work supports such as the Temporary Assistance for Needy Families (TANF) program, the Earned Income Tax Credit (EITC) and the Child Tax Credit; high-quality childcare and early childhood programs for low-income families; “place-based” initiatives, recognizing that poverty, crime, housing characteristics and lack of employment opportunities can all have negative impacts on poor children’s health and well-being; and a White House Conference on Children and Youth to elevate children’s needs and build public support for investments.

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: Roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Percentage of individuals and family members in poverty who either worked or lived with a working family member, 2011: 57 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled, or working households: over 90 percent.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Federal expenditures on home ownership mortgage deductions, 2012: $131 billion.

Federal funding for low-income housing assistance programs, 2012: less than $50 billion.

Quote of the Week

“There is a need for financial reform along ethical lines that would produce in its turn an economic reform to benefit everyone. Money has to serve, not to rule.”
            —Pope Francis

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: Twelve Things You Can Do To Fight Poverty Now


Farmworkers pick tomatoes in Immokalee, Florida. (AP Photo/Luis M. Alvarez)

This is a tough moment in the fight against poverty.

The sequester is the latest chapter in a time-honored tradition of kicking the poor when they are down. A do-nothing Congress certainly isn’t going to do something about poverty without pressure from the grassroots. And it seems that the only way most of the mainstream media will pay attention to the more than one in three Americans living below twice the poverty line—on less than $36,000 for a family of three—is if their lives make good fodder for tabloid television or play out in a courtroom drama.

That said, there are still plenty of people and groups fighting for real change, and plenty of ways you can get involved or stay engaged. I reached out to a handful of folks who dedicate their lives to fighting poverty in different ways. Here is what they asked people to do:

1) From Sister Simone Campbell, Sisters of Social Service, executive director of NETWORK: “Support an increase in the minimum wage to more than $11 per hour.”

What people don’t know is that a large percentage of people living in poverty are workers who support their families on very small salaries. In fact, 57 percent of individuals and family members below the official poverty line either worked or lived with a working family member in 2011.

Pope Francis said on May 1, 2013, that all workers should make wages that allow them to live with their families in dignity. Contact your Senators and Representative to urge them to vote for a minimum wage (one that’s more than $11 an hour) and tipped minimum wage that reflect the dignity of all people.

2) From the Coalition of Immokalee Workers: “Tell Publix: Help end sexual harassment, wage theft, and forced labor in the fields—join the Fair Food Program today.”

Until very recently, Florida’s fields were as famous for producing human rights violations—with countless workers suffering daily humiliation and abuse ranging from wage theft to sexual harassment and even forced labor—as they were for growing oranges and tomatoes.

Today, however, there is a new day dawning for farmworkers in Florida’s tomato fields. The CIW’s Fair Food Program is demanding a policy of zero tolerance for human rights abuses on tomato farms, and it’s working. The program sets the highest human rights standards in the fields today, including: worker-to-worker education on rights, a twenty-four-hour complaint line and an effective complaint investigation and resolution process—all backed by market consequences for employers who refuse to respect their workers’ rights.

The White House recently called the exciting new program "one of the most successful and innovative programs” in the world today in the fight to uncover—and prevent—modern-day slavery; and just last week United Nations investigators called it “impressive” and praised its ”independent and robust enforcement mechanism.”

As the veteran food writer Barry Estabrook put it, thanks to the Fair Food Program, the Florida tomato industry is on the path “from being one of the most repressive employers in the country…to becoming the most progressive group in the fruit and vegetable industry” today.

But we need your help to complete this transformation.

One of the country’s largest supermarket chains, Publix Super Markets, is refusing to support the Fair Food Program. Publix continues to buy tomatoes from growers in the old way, where workers have no access to the Fair Food Program’s proven protections. Rather than step up to the highest human rights standards, Publix continues to turn its back on the workers whose poverty helps fuel its record profits.

Tell Publix Super Markets CEO William Crenshaw to join the fight against human rights abuses in the US tomato industry.

3) From Ralph da Costa Nunez, president and CEO, Institute for Children, Poverty, and Homelessness: “Make a Personal Commitment to Helping Homeless Families.”

More than one-third of Americans who use shelters annually are parents and their children. In 2011, that added up to more than 500,000 people. Since 2007, family homelessness has increased by more than 13 percent. Indeed, there is a growing prevalence of child and family homelessness across America.

While it is important to track the federal, state and local policies that impact homelessness, we can’t forget about getting involved on a personal level with the growing numbers of families that are struggling since the Great Recession.

You can visit a local shelter, meet a homeless family and see first hand the damage poverty is doing to young mothers and children. Then, become a big brother or sister, a role model for these young families to help them dream again. You are meeting an immediate need while also helping to stem generational poverty.

You can also contact your local department of social services, United Way or religious organization to find out where the need is in your community. Also, speak with the homeless liaison at your local school to see what needs they have identified in your neighborhood. There are many ways that you (and your children) can help families right in your community. Here are a few other ideas.

4) From Dr. Deborah Frank, founder and principal investigator, Children’s Healthwatch: “Fund the federal Low Income Home Energy Assistance Program (LIHEAP) at the maximum authorized level.”

Research by Children’s HealthWatch has shown that energy insecurity is associated with poor health, increased hospitalizations and risk of developmental delays in very young children, and that energy assistance can be effective in protecting children’s health. The Low Income Home Energy Assistance Program (LIHEAP) provides low-income households with assistance in paying their utility bills—particularly those that must spend higher proportions of their income on home energy. To be eligible for LIHEAP, families must have incomes at or below 150 percent of the federal poverty level—less than $35,000 annually for a family of four.

When Children’s HealthWatch compared children in families that do and do not receive LIHEAP assistance—after controlling for participation in SNAP and WIC—we found that children in families that received LIHEAP were less likely to be at risk of growth problems, more likely to have healthier weights for their age and less likely to be hospitalized when seeking care for acute medical problems.

As pediatricians and public health researchers, we at Children’s HealthWatch know that LIHEAP matters for the bodies and minds of young children. Even in these tough economic times, we believe it is critical that President Obama and Congress make a funding commitment that meets the heating and cooling needs of America’s youngest children.

But the President has proposed reducing funding for LIHEAP to $2.970 billion in his FY 2014 budget, down from $3.5 billion for the current fiscal year. (Even funding at the current level has left millions of households without the aid they need to cope with their home energy costs.) Please join the National Fuel Fund’s call to fund LIHEAP at $4.7 billion in FY2014. Although that level is insufficient to meet the full needs of vulnerable households, it will enable states to end a trend over the last few years of needing to reduce the number of households served, cut benefits or both. Contact the President and your members of Congress today.

5) Sarita Gupta, executive director, Jobs with Justice/American Rights at Work and Co-Director, Caring Across Generations: “Support of a living wage and basic labor protections for home care workers.”

Caring Across Generations is a campaign that unites people to change the long-term care system that supports each of us, our family members and our neighbors, to live and age in our own homes and communities. One of the key ways we can strengthen this system is to protect the 2.5 million people working as care givers in the United States. With a projected future demand for an additional 1.3 million workers over the next decade, homecare workers make up one of the largest occupations in the nation, yet many of them make below minimum wage.

In December 2011, at a White House ceremony surrounded by homecare workers, employers and people who rely on personal care services, President Obama announced plans for new regulations that would at long last guarantee federal minimum wage and overtime protections for most homecare aides. The moment capped decades of effort by advocates to revise the “companionship exemption,” which lumps professional care workers with teenage babysitters, excluding most homecare aides from the basic labor protections that nearly all other American workers receive.

Following the White House announcement, the US Department of Labor published draft regulations in the Federal Register. During the public comment period, the proposed rule received 26,000 comments with almost 80 percent in favor of providing homecare workers with basic labor protections like minimum wage and overtime pay. But today, over a year after the public comment period closed, we are still waiting for a final rule to be announced.

Join Caring Across Generations and all of our partner organizations in the effort to push for basic minimum wage and overtime protections for care workers, and help us in our final push to ensure that the Obama Administration issues this long-awaited regulation to give 2.5 million care workers a path out of poverty. Visit www.caringacross.org to get involved with the campaign.

6) From Judith Lichtman, senior adviser, National Partnership for Women & Families: “Urge Congress to pass the Healthy Families Act (H.R. 1286/S.631) and a national paid leave program”

More than 40 million workers in this country—and more than 80 percent of the lowest-wage workers—cannot earn a single paid sick day to use when they get the flu or other common illnesses. Millions more cannot earn paid sick days to use when a child is sick.

For these workers and families, paid sick days can mean the difference between keeping a job and losing it, or keeping food on the table and going hungry. Nearly one-quarter of adults say they have lost a job or been threatened with job loss for needing a sick day. And, for the average worker without paid sick days, taking just 3.5 unpaid days off is equivalent to losing a month’s worth of groceries for their family. To make matters worse, the majority of new parents cannot take any form of paid leave of any length to care for a child, pushing many into debt and poverty. The United States is one of only a handful of countries that does not have a national paid leave standard of some kind.

In a nation that claims to value families, no worker should have to lose critical income or be pushed into poverty because illness strikes or a child or family member needs care.

Urge members of Congress to support the Healthy Families Act, legislation that would guarantee workers the right to earn paid sick days. And sign this petition calling on Congress to take up the national paid leave program workers and families urgently need.

7) From Tiffany Loftin, president, United States Student Association (USSA): “Increase regulation of private student loans and hold Sallie Mae accountable for its role in the student debt crisis.”

Throughout the Great Recession, only one type of household debt grew: student debt.

In April 2012, student debt surpassed the $1 trillion mark, and now students owe on average nearly $27,000 by the time they graduate. As student debt and student loan defaults escalate at an unsustainable pace, private student loan lenders continue to increase their profit margins.

Sallie Mae is the largest private student loan lender and one of the chief profiteers off student debt, yet it faces minimal public scrutiny and accountability. With their sky-high interest rates, highly profitable government loan servicing contracts and predatory lending practices, they play a major role in keeping the American Dream out of reach for millions of borrowers.

Join USSA, the Student Labor Action Project (SLAP), Jobs with Justice/American Rights at Work, Common Cause, the American Federation of Teachers and others at the Sallie Mae shareholder meeting on May 30 in Newark, Delaware.

We’ll introduce a shareholder resolution asking Sallie Mae to be more transparent and accountable about its lobbying efforts, affiliations and executive bonus structure—all part of a corporate strategy to increase their bottom line at the financial expense of borrowers. Sign up to attend the join the shareholder action here.

8) From Elizabeth Lower-Basch, policy coordinator, the Center for Law and Social Policy (CLASP): “Support Pathways Back to Work”

Even as the economy recovers, too many unemployed workers and individuals with low education and skill levels face a difficult job market. Nearly two in five unemployed workers have been jobless for six months or more; 6.7 million youth are both out of work and out of school.

Subsidized and transitional jobs are a proven way to give unemployed workers the opportunity to earn wages, build skills and connect to the labor market, while also giving businesses an incentive to hire new employees when they might not be able to do so otherwise.

President Obama’s FY14 budget blueprint calls for the creation of a $12.5 billion Pathways Back to Work Fund that includes: investments in subsidized employment opportunities, support services for the unemployed and low-income adults, summer and year-round employment opportunities for low-income youth and other work-based employment strategies with demonstrated effectiveness.

Please share this letter with nonprofits, businesses or other organizations and ask them to sign on to join us in thanking President Obama for his support of subsidized and transitional jobs in the FY2014 budget, and asking the President and Congress to work together to ensure that the Pathways Back to Work Fund becomes law! (This sign-on letter is only for organizations, but individuals are also encouraged to ask their members of Congress to support the Pathways Back to Work Fund—click the “reintroduce” buttons here and here.)

9) From Marci Phillips, director of public policy and advocacy, National Council on Aging: “Invest in the Older Americans Act.”

The Older Americans Act encompasses a range of programs that enable seniors to remain healthy and independent, in their own homes and communities and out of costly institutions. Services include healthy meals, in-home care, transportation, benefits access, caregiver support, chronic disease self-management, job training and placement and elder abuse prevention.

Funding has not kept pace with the growth in need or numbers, and recent cuts before the sequester hit have further eroded investments in key services. About 10,000 people turn 65 each day, and those over 85 are the fastest growing segment of the aging population.

One in three seniors is economically insecure. Social Security accounts for at least 90 percent of the income of more than one-third of older adults, and there has been a 79 percent increase in the threat of hunger among seniors over the past decade. The average duration of unemployment for people 55 and older is almost fifty weeks—longer than any other age group. Over 75 percent of all older adults have at least two chronic conditions, and the average Medicare household spends $4,500 on out-of-pocket healthcare costs.

There is a real need to increase funding for Older Americans Act programs like Meals on Wheels and in-home care. Please share your stories of cuts affecting seniors, so we can share them with Congress and the Administration and protect investments in the Older Americans Act.

10) From Rebecca Vallas, staff attorney/policy advocate, Community Legal Services: “Tell Congress no cuts to Social Security and SSI through the Chained CPI.”

While the “chained CPI” is often referred to as just a technical change, in truth it’s a benefit cut for millions of seniors, people with disabilities and their families who rely on the Social Security system to meet their basic needs. Social Security retirement, disability and survivors benefits and Supplemental Security Income (SSI) serve as a vital lifeline, making up a significant percentage of total family income for many workers and families.

Reading this for free? Chip in—fight the right with our reader-supported journalism.

The average yearly benefit for the lowest quintile of earners receiving retirement benefits in 2010 was $10,206—and that represented 94 percent of their family income. Social Security Disability and SSI benefits are incredibly modest as well. The average SSDI benefit is about $1,100 per month in 2013, and the average SSI benefit is less than $550 per month. And for most disabled workers receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), their benefits make up most or all of their income. Even the maximum SSI benefit ($710 in 2013) is just three-fourths of the federal poverty level for a single person, and a quarter of SSDI beneficiaries live in poverty.

The amount a person gets in Social Security or SSI benefits is adjusted annually based on the Social Security Cost-of-Living Adjustment (COLA). The chained CPI would slow the increase in the Social Security COLA, cutting benefits and eroding the purchasing power of seniors, people with disabilities and their families. Cuts under the chained CPI add up significantly over time. Since the effect of the chained CPI is cumulative, it would be especially hard on people with disabilities, since they typically begin receiving benefits at a younger age than retirees.

The chained CPI is not a more accurate measure of inflation for seniors and people with disabilities. It is based on a concept called the “substitution effect”—which assumes that when the price of one good goes up, a consumer will substitute a lower-cost alternative in its place (e.g., when the price of steak goes up, a person will buy hamburger instead). For Social Security and SSI beneficiaries who are struggling to make ends meet as it is, there’s no room for substitution—and no room for benefit cuts. Benefit cuts under the chained CPI would push beneficiaries to make impossible choices such as not paying the gas bill to afford the water bill, taking half a pill instead of a whole pill or eating two meals per day instead of three to afford the cost of a copay on a needed medication.

Low-income seniors and people with severe disabilities are already struggling and can’t afford cuts. Send this e-mail to Congress to tell them NO on the chained CPI, and to keep Social Security cuts out of any budget plan. For AARP’s chained CPI calculator, click here.

11) From Jim Weill, President, Food Research and Action Center: “Tell Congress: Increase, Don’t Cut SNAP (Food Stamp) Benefits.”

SNAP is a great program—boosting food security, health and nutrition and lifting millions out of poverty and millions of others out of deep poverty. But as a National Academy of Sciences Institute of Medicine expert committee just found, for most families benefits simply aren’t enough to afford a healthy diet for the month. This means that the program isn’t doing as much for food security, poverty reduction, child development, disease prevention and healthcare cost containment as it could. And despite a series of Pinocchio-inspired political attacks on the program in the 2012 election season and in this year’s run-up to SNAP reauthorization as part of the Farm Bill, public support for the program is high: 73 percent of voters believe the program is important to the country; 70 percent say cutting it is the wrong way to reduce government spending; and 77 percent say the government should be spending more (43 percent) or the same (34 percent) on SNAP. This support crosses parties, demographic groups, and rural, urban and suburban lines.

Here’s what you can do: Tell your Representatives and Senators that the right course for the nation is to improve food stamp benefits (and support at least the temporary benefit boost the President has proposed) and that they must oppose any SNAP cuts being considered by the Agriculture Committees in the “Farm Bill.”

12) From Debbie Weinstein, executive director, Coalition on Human Needs: Tell Congress to stop harmful cuts to anti-poverty programs now.”

Across the country, federal “sequestration” cuts (aka mindless automatic reductions) are closing Head Start programs weeks early and canceling summer programs for poor 3-to-5-year-old children; some Head Start centers are closing altogether or dropping children. Seniors are losing home-delivered meals or homemaker services that allow them to remain at home instead of being pushed into nursing homes. The long-term jobless are losing 10 to 20 percent of their meager benefits; in Maine, they decided to cut all unemployed people off of assistance nine weeks early. One hundred forty thousand fewer families will get rental housing vouchers, despite waiting for help for years, which will contribute to rising family homelessness. Education is being cut, from pre-school to the Federal Work-Study Program (formerly “College Work-Study”) that helps students finance college through part-time employment. In Michigan, they are eliminating a $137 back-to-school clothing allowance for 21,000 poor children.

These cuts are wrong and foolish any way you slice it—they keep people poor, cost jobs and stall economic growth for everyone.

Send this e-mail to your Representative and Senators and join hundreds of thousands who are fed up that Congress would ignore these problems while fixing just one thing—inconvenient delays at airports. Also, for weekly summaries of the impact of these sequester cuts, click here.

Standing for Communities: ‘The Power of Collective’ (from the Marguerite Casey Foundation via Equal Voice News)

Clips and other resources (compiled with James Cersonsky)

Prenatal Care from Midwives May Lead to Healthier Babies, Healthier Moms,” Sarah Benatar

Occupy Protesters Shut Down Wells Fargo Over ‘Fraudulent Foreclosures,’” Dan Bluemel

Is segregation really bad for everyone?” Steve Bogira

The Communities of Climate Change Are Leading the Charge,” Center for Social Inclusion

That Unemployment Form Might Violate Your Civil Rights,” Michelle Chen

Sequestration Cuts Strapped Domestic Violence Services Amid Increased Need,” Bryce Covert

A Giveaway to D.C. United Won’t Benefit the District’s Urban Fabric,” Brady Dale

SNAP Will Take a Hit Even Before the Farm Bill Battle Begins,” Stacy Dean

Playing ‘chicken’ against city’s students,” Eileen McCafferty DiFranco

Surprise fast food strike…in St. Louis,” Josh Eidelson

Fast Food Strike Wave Spreads to Detroit,” Josh Eidelson

Documenting Discrimination in Local Rental Markets,” Hannah Emple

Americans Continue to Voice Strong Support for SNAP and Strong Opposition to Cuts,” Food Research and Action Center

Critics decry Pennsylvania’s revived asset test on food stamps,” Kate Giammarise

Disconnected Mothers Need Help in More Than One Way,” Olivia Golden, Marla McDaniel and Pam Loprest

In Support of the Indian Child Welfare Act,” LaDonna Harris

House SNAP Proposal Threatens Grave Harm to Poor Single Parent Families,” Legal Momentum

Child Benefits in the Tax Code: Does the current system make sense?” Elaine Maag

America Needs to Put its Families First,” Jennifer Martinez

How People Power Generates Change,” Moyers & Company [VIDEO]

Fannie and Freddie Should be Making Statutorily Required Contributions to the National Housing Trust Fund,” National Low Income Housing Coalition

NYC Announces Pilot Expansion of EITC,” New York City

How the Maximum Family Grant rule hurts families,” Melissa Ortiz

Mothers Cry for Justice,” Peter Rothberg [VIDEO]

3 Ways Sequestration Is Taking a Toll on Struggling Americans,” Lauren Santa Cruz and Erik Stegman [VIDEO]

Fast Food Workers Strike in St. Louis,” Annie Shields

Sequester Cuts to Emergency Unemployment Insurance Compensation will likely cost around 30,000 jobs,” Heidi Shierholz

Oregon Medicaid Study Strengthens—Not Weakens—Case to Expand Medicaid,” Judy Solomon

The Ties that Bind: Helping Mothers Behind Bars,” Nancy La Vigne

Studies/Briefs (summaries written by James Cersonsky)

Underwriting Bad Jobs: How Our Tax Dollars are Funding Low-Wage Work and Fueling Inequality,” Amy Traub and Robert Hiltonsmith, Demos. The largest employer of low-wage workers isn’t McDonalds or Macy’s—but the federal government. In a report on job standards for federal contractors and federally subsidized jobs, Demos examines the many ways that taxpayer dollars are helping to keep people in poverty through low-wage work. The quantitative analysis covers a subset of private sector contracts, grants, loans, concession agreements and property leases: government contracts, federal healthcare imbursements, Small Business Administration loans, federal construction grants and maintenance of buildings leased by the federal government. Among these jobs, nearly two million pay $12 or less per hour—more than the number of Walmart and McDonalds workers making that amount combined. The largest numbers come from Medicaid-supported jobs (759,000) and direct federal contracts (560,000). Meanwhile, CEOs of government contractors are getting richer—as their maximum salaries are pegged to exorbitant private sector standards. The report calls for an executive order requiring federal agencies to raise workplace standards and ensure compliance with labor law, and oversight over private sector beneficiaries—including evaluation of whether the labor they employ should be through private contractors or moved to the public sector.

Latinas and Sexual Assault,” Neusa Gaytan and Maralá Goode, Mujeres Latinas en Acción. Though sexual assault affects everyone everywhere, Latinas confront particular challenges. This report gives a Chicago-area profile of the crisis. The numbers tell some of the story: nationally, 11.2 percent of Latina high schoolers are reported to have been physically forced to have sex, compared to 8 percent of all high school students; in 2012, 21 percent of survivors who received services from Illinois Coalition Against Sexual Assault centers are Hispanic. Of thirteen service providers analyzed in the report, all identified a gap in services for adolescent survivors—a particularly acute problem for Latino/as. In all age groups, Latinas face systemic barriers in accessing services: discrimination and racism from law enforcement and social service staff; unfamiliarity, among some, with legal procedures; and a lack of Spanish-speaking staff providing services for survivors. The report lays out steps for strengthening the legal process, youth outreach and bilingual, culturally-specific service training.

Preventable Deaths: The Tragedy of Workplace Fatalities,” National Council for Occupational Safety and Health. In 2011, 4,609 workers were killed on the job in the US—and yet the federal government can only levy $7,000 in fines for “serious” workplace safety violations, and the average fine in these cases is only $1,680. What results is a perverse incentive structure for employers not to improve conditions for workers, who may lack knowledge of safety laws or leverage to speak up. This report lays out the conditions faced by the most vulnerable classes of workers, and what local and federal government can do to fix them. Temp workers, for example, tend to be younger, less educated, less likely to be US citizens and more likely to be employed in hazardous jobs like waste management and construction. Model remedies include Cal/OSHA’s robust inspection system for companies that use temp work and Massachusetts’s Temporary Worker Right to Know Law. Immigrant workers face language barriers, service providers and workplace personnel with insufficient knowledge of their legal rights and outright discrimination. Undocumented workers in particular need whistleblower protections for reporting employer abuses. Another class of workers, especially in retail and public services, face workplace violence, including from those they serve. For these workers, the report recommends strengthening on-site security and prevention standards.

More Actions

Stand With Detroit Workers

DC/MD: Labor Picket Outside of the Montgomery County Democratic Central Committee Spring Ball

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: Roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Percentage of individuals and family members in poverty who either worked or lived with a working family member, 2011: 57 percent.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled, or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Mothers who are homeless as a direct result of domestic violence: 1 in 4.

Homeless mothers who will experience domestic violence at some point: over 90 percent.

Federal expenditures on home ownership mortgage deductions, 2012: $131 billion.

Federal funding for low-income housing assistance programs, 2012: less than $50 billion.

Quote of the Week

“If the state is serious about improving the educational results of low income children, then more must be done to reduce child poverty.”
   —from California Assembly Democrats’ “Blueprint for a Responsible Budget

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: Florida Gives Workers a Smackdown


Workers march in front of a Miami-Dade courthouse under construction to protest stolen pay. (AP Photo/J. Pat Carter)

If the Florida House Republicans have their way, here is what the state’s workers would stand to lose: paid sick leave, a living wage, wage theft protections and equal opportunity benefits (for same sex couples, for example).

That’s because an assortment of bills—including one introduced by House Majority Leader Stephen Precourt that would nullify nearly all of these pro-worker policies—would pre-empt local ordinances and leave it up to the state to implement (or not) any of these measures. Miami Herald columnist Fred Grimm writes that these bills were “ghost written by special-interest lobbyists.”

It would mean the end of the fourteen-year-old Miami-Dade County living wage ordinance. A new anti-wage theft law that passed just last month in Alachua County would be nixed. The paid sick leave initiative that 52,000 Orange County residents got onto the ballot for 2014—gone.

“What makes it all even more ridiculous is that we have no state-level Department of Labor,” said Jeanette Smith, director of South Florida Interfaith Worker Justice (SFIWJ). “So even if the legislature did pass any worker protection laws—which they aren’t—who is going to enforce them? All they are doing is lessening the rights that are currently there for workers.”

The timing of this smackdown on working Floridians couldn’t be worse. A new report from the Research Institute on Social and Economic Policy at Florida International University indicates that more than 23 percent of the state’s residents live in poverty, with children 1.5 times more likely than adults to live below the poverty line of approximately $23,000 for a family of four.

How this all plays out in the legislature is still up in the air and might be determined today—the last day of the session. Bill authors have carved out exceptions to the wage theft pre-emption for Miami-Dade (which has recovered $600,000 in lost pay since 2010) and Broward counties, but not for Alachua County. This is especially strange since the companion bill in the Senate was introduced by freshman Senator Rob Bradley, who represents Alachua. Smith said that the Alachua County Commissioners and their staff have spoken out against the pre-emption—even in Senate hearings—but Bradley hasn’t backed down.

“I’m sure he’s representing someone in Alachua but it’s apparently not the county or the workers,” said Smith.

If Bradley’s bill clears the Senate, the pre-emption of local wage theft laws is a done deal—and that’s a big deal, because prior to the county ordinances, workers effectively had no place to turn for help.

“If the bill passes, we have to flood the small claims court system which would now be responsible for addressing this, and let them see the depth of the wage theft problem,” said Smith.

Majority Leader Precourt’s anti-worker bill was made a tad (but just a tad) less anti-worker in the Senate—with local ordinances for a living wage, paid sick leave and equal opportunity benefits permitted for government employees and contractors (tough luck for all other workers). Initially, Precourt insisted that the House wouldn’t pass the bill if it included the exceptions for these workers. According to Smith, the hope was that Precourt’s determination to keep the state from joining the twenty-first century might be Floridian workers’ best hope, as a number of Senate Republicans would be reluctant to follow his totally regressive path.

But late yesterday, the House passed the Senate’s version of the bill. That means, as of today, there is no possibility of local pro-worker laws for wages, paid leave and equal benefits except for government employees and contractors.

“This is a huge undermining of local control,” said Smith. “The House wanted to make it so local governments couldn’t even set standards for their own [employees and contractors], but at least we beat that. Now local governments just can’t say anything regarding the private companies in their areas—which is bad enough.”

The verdict is still out on the legislation pre-empting local wage theft laws. There is hope that the bill might be dead, but advocates won’t know for sure until the session ends today.

“No matter which way this goes, we need to band together and recognize that this is all about a voting process, and getting people in there who represent our interests,” said Smith. “Too many people still don’t recognize that, and they don’t know until the deed is done what’s been taken away from us.”

California’s Homeless Bill of Rights

Last week the California Assembly’s Judiciary Committee passed AB 5, The Homeless Bill of Rights, by a vote of 7 to 2. At a time when homelessness is increasingly criminalized, this is an important step towards helping people instead of punishing them for not having a home. Advocates overcame strong opposition to the bill, in part through a grassroots movement of homeless and poor people that mobilized hundreds of people to rally and lobby the Democratic members of the committee.

There are now approximately 160,000 men, women and children who experience homelessness in California on a daily basis, about 20 percent of the nation’s total homeless population. The state ranks second worst in the number of homeless children, and third worst in the percentage of children who are homeless, according to the National Center on Family Homelessness. A 2011 US Conference of Mayors report attributed the rise in homelessness across the nation—despite the recovering economy—primarily to unemployment and a lack of affordable housing, in that order.

Yet the response by political leaders in California and other states hasn’t been a sympathetic one—it’s largely been to prosecute those who are struggling.

Reading this for free? Chip in—fight the right with our reader-supported journalism.

A report by the National Law Center on Homelessness and Poverty notes that criminalization of homelessness has taken many forms, including: enactment of laws that make it illegal to sleep, sit or store personal belongings in public spaces of cities without sufficient shelter or affordable housing; selective enforcement against homeless people for violating seemingly neutral laws like loitering, jaywalking or open container ordinances; sweeps to drive homeless people out of areas—which often results in the destruction of their personal property, including medications and personal documents; punishing people for begging or panhandling; and restricting groups from sharing food with homeless people in public areas.

“What cities and counties are doing right now to respond to homelessness isn’t helping, it’s making the problem worse,” said Jessica Bartholow, legislative advocate for the Western Center on Law and Poverty, another cosponsor of the legislation.

In contrast, some of the measures proposed in the Homeless Bill of Rights include the creation of hygiene centers with bathrooms and showers; allowing people to rest, sit or sleep in public spaces; access to counsel during civil prosecutions; and protecting people who offer food in public places. It would also instruct local governments to track laws and arrests that target homeless people and report them to the district attorney.

“This bill is really about basic justice,” said Assemblymember Tom Ammiano, who authored the bill. “People who are homeless not only have to struggle with life on the street, [but] the indignity of being treated like criminals because they have nowhere to eat, sit or sleep except in public.”

Bartholow was particularly moved by testimony from homeless people from Los Angeles who were woken up and arrested at 6:02 am due to a law against sleeping in public past 6. Another disabled woman in a wheelchair had lived on the same street corner for many years and been arrested more than a hundred times.

“Not for committing a crime, not for blocking a street or sidewalk—just for sitting there in her wheelchair,” said Bartholow.

Bartholow said that too many homeless people also end up in jail because they can’t pay the citations they receive for sitting in a public space. “So they have to spend time behind bars, because they sat peaceably in a public space, because they have no private space to sit in,” she said.

The bill now goes to the Appropriations Committee, where costs will be considered for measures such as the hygiene centers, legal representation and reporting requirements of local jurisdictions. Bartholow said that advocates will look for ways to “ameliorate costs,” but that this bill is a critical step in changing how we address homelessness and poverty as a society.

“The greatest misconception about this bill is that it somehow makes things more dangerous by allowing people to rest in public places,” she said. “But the bill in no way protects malicious or antagonistic behavior, or blocking doorways or pathways. It protects people’s right to rest—which is a human need. People who don’t have a private space to do that need to be able to do that somewhere. And sometimes the only place available is a public space.”

You can follow the campaign to pass this bill here.

Child Care and No-Win Decisions

Guest post by Carol Burnett

In a recent article in The New Republic (“The Hell of American Day Care”), reporter Jonathan Cohn investigates what he describes as the “barely regulated, unsafe business of looking after our children.” Lax regulation leading to unsafe child care is indeed a critical issue that needs to be addressed; and so is the huge unmet need for affordable child care options for low-wage working parents.

Cohn acknowledges that the tragic example used as the frame for his article—a child care fatality—is relatively rare. But what is not at all rare—and what really gets to the root of the problem—is the heartbreaking, no-win choice the mother was faced with in trying to find child care that she could afford on her low wage.

Mothers across the country face this dilemma constantly. They too often work in jobs that don’t pay enough to meet a family’s basic needs. Or they want to work, or go to college for a shot at a better career, but can’t afford child care. Or the welfare work requirement forces them into low-wage jobs where they can’t afford child care.

Mothers with young children make up our nation’s poorest families. If they earn the minimum wage of $7.25 per hour, that’s roughly $15,080 per year (though minimum wage jobs rarely provide full-time work because employers restrict hours to avoid paying benefits).

Wider Opportunities for Women developed the Self-Sufficiency Standard to calculate the wage a worker would need to earn in order to afford a family’s basic needs, based on the family’s size and geographic location. The tool shows that parents need to earn far more than a minimum wage, and if the family includes a young child or infant, the wage required is significantly higher due to the high cost of child care.

Our nation does have a child care assistance program that is supposed to help low-income working parents afford child care—the federal Child Care Development Fund (CCDF) block grant to states. This program is hugely helpful for the families it serves. Unfortunately, it only serves about 18 percent of eligible children, which means that 82 percent of eligible children do not receive the subsidy. Eligibility requires a parent to be both working and low-income. Waiting lists are swelling in every stat­­­­­­e—millions of parents wait for the child care they need in order to continue working.

What makes our lack of commitment to providing affordable quality child care for all families even more frustrating is that we know what children need for successful outcomes later in life. In fact, we know more than ever before about the kind of environment, interactions and experiences children need to support their cognitive, physical, social and emotional development.

We also know what working parents need. Other countries such as France provide examples of systems that provide quality care for children so their parents can work. And we have an example in our own country: the Military Child Care Act that transformed an abysmal child care system into a system that is the best in the nation.

If the need is so great, we know what to do, and the consequences of failing are so dire as illustrated by The New Republic article, then why haven’t we created a national system of quality child care for all working parents?

Polls show that Americans believe that child care is a parent’s personal responsibility and that there is no social obligation to help parents pay for it. The result of this prevailing opinion is that mothers buy the child care that they can afford: wealthier mothers are able to buy high quality care; poor mothers—mostly single mothers and women of color—usually cannot. Thus, a vicious cycle of inequity and inequitable outcomes continues.

In this country where all child care is financed with parent fees, child care providers struggle to cobble together resources to pay for their services. Where the ability of parents to pay is limited, providers barter with them, or serve families for free, or reduce rates. For the few families lucky enough to receive subsidies, the reimbursement rate to providers is low—four-fifths of states reimburse below the 75th percentile of the current market rate. Reimbursement is also unreliable—parents have to apply and re-apply frequently through an often cumbersome process. Even worse, states are whittling away at this already inadequate assistance. Erosions in payment are occurring at the same time that quality requirements are being ramped up, which might lead to even fewer affordable options for low-income families.

The child care subsidy program that is so critical to affordable services for working parents is bemoaned as lacking quality standards. But a system starved for revenue cannot enact quality improvements without more resources: increasing staff education levels requires increasing child care wages; enhancing the learning environment means buying more books and learning materials. Some states have initiated quality-rating systems, but in doing so they are often reducing the supply of direct child care services for low-income working parents in order to fund these efforts.

President Obama is proposing significant additional investments in our nation’s early childhood system: pre-k, Early Head Start, Head Start, the federal child care block grant to states, home visiting, 21st Century Learning Centers, etc. But these pieces of our system are like pieces of a puzzle: some parents qualify for some of these services, and some of these services are only available to serve some children some of the time. Parents and providers have to navigate all these fragments and try to piece them together into a seamless system of service.

While all of these investments are sorely needed—and President Obama should be commended for his proposal—if we truly want to solve the problems faced by low-income working parents, then we need a seamless system: one that provides the secure, quality care children need for good outcomes, at an affordable cost that allows parents to remain employed.

Marian Wright Edelman, president of the Children’s Defense Fund, has said, “No parent should have to choose between the child they love and the job they need.”

I couldn’t agree more. Until we build a system of affordable, quality child care for all families, we will continue to force parents into making no-win decisions.

Carol Burnett is the executive director of the Mississippi Low Income Child Care Initiative, a statewide organization of parents, providers and community leaders working together to improve the quality of child care for all of Mississippi’s low-income children.

Get Involved

Stand with Chicago fast food and retail workers!

Fix the Sequester Cuts for the Poor, Not Just Congressional Travel

Toolkit: #TalkPoverty & Take Action on Sequestration

Clips and other resources (compiled with James Cersonsky)

NYT Uses News Story to Express Dislike of Danish Welfare State,” Dean Baker

Workers Organize to Fight the ‘Part-Timeification’ Trend at Juicy Couture, Other Chains,” Sheila Bapat

Why Women and People of Color Keep Getting Shafted in the Growing Restaurant Industry,” Sheila Bapat

What Can Poverty Fighters Learn from Immigration Reform?” Deepak Bhagarva

Rural Unemployment Surpasses Urban Rate,” Bill Bishop

Farmworkers Dig Into the New ‘Blue Card’ Plan,” Michelle Chen

Sequester Impact: April 26-May 2,” Coalition on Human Needs

Amid ‘Obama Flight Delays’ And Deal Making, Sequestration’s Impact On The Poor Goes Ignored,” Bryce Covert

The Sequestration Myth,” Daily Show with Jon Stewart [VIDEO]

Courts’ Campaign to Squeeze Poor Debtors Goes Awry,” Daniel Denvir

Norristown ordinance encourages landlords to evict domestic violence victims says ACLU,” Daniel Denvir

Fast food walkout… in Chicago,” Josh Eidelson

Homeless advocates seek restoration of funding,” Kate Giammarise

The Bangladeshi Blood on America’s Hands,” William Greider

Small donors could change imbalance of power,” Bob Herbert

The Consequences of Long-term Unemployment for 4.6 Million Americans,” Richard Johnson

NPR & disability: Who pays for ‘public’ radio, & what ethics govern an age of venture philanthropy?” Jennifer Kates

How Pay Inequity Hurts Women of Color,” Sophia Kerby

Hope, Love and Strategy in the Time of the Zombie Apocalypse,” Stephen Lerner

Top 6 Policies to Help the Middle Class that Won’t Cost Taxpayers a Penny,” David Madland and Karla Walter

Criminalization of homelessness—local impact, global issue,” National Law Center on Homelessness & Poverty

Losing Ground: A Profile of Florida’s Families in Poverty,” Research Institute on Social & Economic Policy

City Report Shows More Were Near Poverty in 2011,” Sam Roberts

In era when small-town lawyers are vanishing, South Dakota tries subsidies,” Karen Sloan

All Work, No Pay,” Joseph Sorrentino

The California Secure Choice Retirement Savings Program,” Aleta Sprague

Ohio and Macalester Sit-In, Chicago and Wittenberg Walk Out,” StudentNation

A California Town Bleeds From Sequestration’s Cuts,” Gabriel Thompson

The Coming Revolution in Public Education,” John Tierney

Retail and Fast Food Workers Strike in Chicago’s Magnificent Mile,” Micah Uetricht

Governor Cuomo and the Working Families Party: Eve of Destruction?” Katrina vanden Heuvel

School closings traumatize vulnerable children,” Julie Woestehoff

Building Health Communities With Fresh Produce,” Brad Wong

House GOP Plans Even Deeper Food Stamp Cuts,” George Zornick

Studies/Briefs (summaries written by James Cersonsky)

Less Than Equal: Racial Disparities in Wealth Accumulation,” Signe-Mary McKernan, Caroline Ratcliffe, Eugene Steuerle and Sisi Zhang, Urban Institute. Just how much has the racial wealth gap grown? For one, more than race-based income inequality. In 2010, the average income for whites was twice that of blacks and Latinos—roughly the same multiple as in 1983. Over that same period, the wealth gap has gone from five to six times more for whites than blacks and Latinos. One fault line in the persistent—and growing—wealth gap is age: in their early 30s, white families have 3.5 to 4 times the wealth of black families at the same age. In addition, the recession took an uneven toll: while white wealth declined by 11 percent from 2007 to 2010, it went down 31 percent for blacks and 40 percent for Latinos. For Latinos, this loss came largely from lower home values; for blacks, from shrinking retirement accounts.

An Uneven Recovery, 2009-2011,” Pew Research Center. Between 2009 and 2011, US Census data reveals, the mean net worth of the top 7 percent of households increased by 28 percent—while dropping 4 percent for the rest of the population. While the total sum of household wealth increased a whopping $5 trillion over this period, the entirety of that gain went to the top 7 percent. The imbalanced recovery is due, in part, to class-based differences in asset-holdings: wealthier households often have their assets concentrated in stocks and other financial holdings—which have rebounded handsomely—while others’ assets are more concentrated in their homes. To make matters worse for less wealthy households, the first two recovery years saw a drop in ownership of stocks and mutual fund shares from 16 percent to 13 percent.

Stuck: Young America’s Persistent Jobs Crisis,” Catherine Ruetschlin and Tamara Draut, Demos. For the younger population, the economic recovery has yet to arrive. Not only are 10.3 million 18 to 34-year olds currently unemployed or underemployed, but the economy would have to add 4.1 million jobs for young adults to return to pre-recession levels of employment. Youth unemployment is even more severe for people of color: 25 percent higher for Latino workers compared to white workers, and double for blacks compared to whites. Moreover, labor force participation for young workers was at its lowest point in 2012 in more than four decades. And 18- to 24-year olds who do have work languish in some of the lowest-paying industries: retail (20 percent of this population) and food service (also 20 percent). How even to begin remedying the youth jobs crisis? The report offers four proposals: a youth jobs corps; higher minimum wages; expansion of unionization and collective bargaining rights; and investment in community college and vocational training.

Sequestering Meals on Wheels Could Cost the Nation $489 Million per Year,” Jessica Schieder and Patrick Lester, Center for Effective Government. Under sequestration, the Meals on Wheels program is expected to lose an estimated $10 million this year. However, the net loss of this cut could be much greater. One reason is that the program allows seniors to stay at home rather than moving to nursing homes, which require greater funding from Medicaid per person. (Care funded through Medicaid is nearly three times greater for people in nursing homes than for those who stay in their own homes.) In total, the authors calculate, cutting $10 million in Meals on Wheels would hit taxpayers on the order of $479 million for the duration of this fiscal year.

Mandatory Drug Testing of Work First Applicants and Recipients Would Be Costly, Likely Illegal, and Ineffective at Identifying and Treating Drug Abuse,” Sabine Schoenbach and Tazra Mitchell, North Carolina Justice Center. North Carolina’s Work First program was started in 1996 to provide basic services, short-term training and small cash grants to low-income families. Not only is the program falling short on enrollment—between December 2007 and March 2013, state unemployment went up 4.2 percentage point, but Work First enrollment decreased by 17 percent—it’s now under attack from a new state bill that would require recipients to pass (and pay for) drug tests as a condition of applying. This brief details the policy’s wrongheadedness: the testing could cost the state upwards of $2.3 million; it likely violates the Fourth Amendment; and limitations common to blanket drug-testing mechanisms could render it ineffectual for its intended purpose.

Expect More: How Target Chooses to Shortchange Minnesota’s Communities of Color,” TakeAction Minnesota, Centro de Trabajadores en Lucha-CTUL, SEIU Local 26, ISAIAH and Minnesotans for a Fair Economy. Target is the fourth largest employer in Minnesota—and proud of its Minnesotan roots. As these groups argue, though, “There is a tremendous opportunity for Target to have a more diverse workforce—one that is paid a living wage with safe working conditions which would more honestly align with the company’s carefully crafted public image of giving back to the communities it serves.” Target’s problems are many: contracting abusive janitorial companies that have stolen workers’ wages; hiring discrimination; and actively shirking promises of job creation, in exchange for millions in public subsidies in the Twin Cities alone—and exemptions from Minneapolis’s municipal living wage. The report calls on Target to hire responsible, law-abiding contractors; adopt fair hiring practices; and deliver on its promises to create jobs in the metro-area Brooklyn Park, where it has fallen notably short.

Market-oriented education reforms’ rhetoric trumps reality,” Elaine Weiss and Don Long, Broader, Bolder Approach to Education. There’s great promise for students in rating teachers according to student tests, expanding charter schools (and therefore parental “choice”) and closing “failing” or under-enrolled schools—if you believe the billionaires, politicians and so-called reformers who will booster these policies at all costs (often, to their own financial benefit). The authors of this report rip the prevailing reform logic to shreds. Analyzing reams of quantitative and qualitative data from New York, Chicago and Washington, DC, they find the following: despite reports of success, test scores have increased less in these “reform” cities than in other districts; school closures don’t funnel students to better schools—or bolster student outcomes; and the majority of students who leave district schools for charter schools land in lower-performing environments. Instead, the authors argue, school reform should revolve around initiatives that tackle poverty and inequality of opportunity head on—for example, comprehensive childhood education in DC, college financial aid counseling in Chicago, school-based health clinics in Cincinnati, and Montgomery County’s (MD) range of holistic approaches to rating teachers and developing student programs and coursework.

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: more than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Mothers who are homeless as a direct result of domestic violence: 1 in 4.

Homeless mothers who will experience domestic violence at some point: over 90 percent.

Federal expenditures on home ownership mortgage deductions, 2012: $131 billion.

Federal funding for low-income housing assistance programs, 2012: less than $50 billion.

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

Banks on the Run (Continued)


A home mortgage office in Springfield, Illinois. (AP Photo/Seth Perlman)

You can’t talk about poverty without talking about the practices of the big banks, including their continuing refusal to stem the foreclosure crisis through mortgage principal reductions.

Consider this: Latinos lost 66 percent of their household wealth after the housing bubble burst, and African-American households lost 53 percent. Nearly 12 million families—disproportionately people of color—have either lost their homes or are currently in foreclosure, and another 16 million are underwater, owing more on their mortgages than their homes are worth.

Communities are decimated by boarded up houses and vacant lots, declining property values and the consequent loss of state and local revenues, and fewer opportunities to weather and recover from financial hardship. A new study from the Urban Institute indicates that white families now average six times the wealth of African-American and Latino families.

So when US Bank executives fled Minneapolis two weeks ago to hold their annual shareholders meeting in what they believed would be friendlier confines in Boise, it was important that activists from Minnesota and Oregon traveled to join Idahoans in an effort to hold the bank accountable. Then last week, Wells Fargo bankers traveled from San Francisco to Salt Lake City for their shareholders meeting, and activists again weren’t deterred—they came from California, Colorado and New York to stand with local groups and protest the bank’s practices.

“Wells Fargo moved the shareholders meeting to Salt Lake because last year there were 3,000 people in the streets in San Francisco,” said Maurice Weeks, campaign coordinator for the Alliance of Californians for Community Empowerment (ACCE), which had fifteen members make the eleven-hour trip to Utah. “We wanted them to know that they can’t hide from us.”

ACCE members attended the shareholders meeting as legal proxies. They were joined by members of the Neighborhood Economic Development Advocacy Project (NEDAP) from New York, the Colorado Student Power Alliance and local groups from Salt Lake City that were focused on Wells Fargo’s investments in private prisons and the impact on communities of color.

Several ACCE members in attendance were facing immediate foreclosures and welcomed the opportunity to tell Wells Fargo CEO John Stumpf—who was paid $22.87 million last year, more than any other banker—that they hadn’t been given a fair shake.

“We’re talking about folks who could pay their mortgages and stay in their houses with a modification, and Wells refuses,” said Weeks. “We’ve had situations where a HUD counselor tells our members that they qualify and Wells still denies a modification.”

More broadly, ACCE was there to demand that Wells commit to pursuing principal reductions—reducing the amount owed on a mortgage so that it reflects the fair market value of the property—wherever they are legally able to do so. A recent report from ACCE, the Center for Popular Democracy and the Home Defenders League suggests that foreclosing on the more than 11,600 California homes currently in Wells’s foreclosure pipeline—which are concentrated in poor and non-white communities—would cost the state approximately $3.3 billion due to the decreased value of the foreclosed properties, decreased value of homes in the surrounding communities and lost tax revenues. In contrast, a comprehensive program of principal reduction would stabilize households, increase tax revenues and boost the economic vitality of distressed communities. (Modifications also happen to be better for the investors who hold the mortgage, but unfortunately banks that service the mortgages—like Wells Fargo—can often make more money by foreclosing.)

A second key demand by ACCE members was that Wells Fargo report its data on principal reductions, short sales and foreclosures by race, income and zip code. Last year, the bank reached a $175 million settlement with the Department of Justice for allegedly charging African-American and Latino borrowers higher rates and fees and steering them into subprime loans when they should have qualified for regular loans.

“Our members want to make sure Wells isn’t still preying on communities of color,” said Weeks.

NEDAC presented a resolution for an independent investigation of Wells Fargo’s business practices in order to ensure that they don’t violate any fair lending or fair mortgage laws. Although the resolution was voted down, Weeks said it received more discussion than any other resolution presented to the shareholders.

“ACCE members—but also people we didn’t know—were all voicing concerns about Wells Fargo’s mortgage practices,” said Weeks.

According to Weeks, when Stumpf tried to move onto “business as usual,” Makayla Major, an ACCE member from East Oakland, stood up and shouted, “John Stumpf, you’re a liar and a crook. You are stealing too many homes in my neighborhood!” Weeks said that the room was lined with “forty or fifty” security guards and that “six or seven” immediately moved in to “make her be quiet.”

Then ACCE member Manuela Alvarez—who has been trying unsuccessfully to modify her subprime loan since her husband was injured on the job—said, “You are trying to steal my home, like you’ve stolen the homes of tens of thousands of other hard-working families. It’s time for you to be held accountable!”

She, too, was quickly surrounded by security.

ACCE member Melvin Willis then began reading a “Citizens Arrest Warrant” for Stumpf for “the following crimes: illegally foreclosing on millions of homeowners nationwide; intentionally targeting communities of color with predatory, high-cost loans; and gouging students with predatory student loans—usury.”

“He was immediately swarmed and at that point we were all escorted out of the room and the hotel,” said Weeks. “But John Stumpf and the shareholders definitely heard our message, and we made it clear that they can’t ignore these issues.”

Reading this for free? Chip in—fight the right with our reader-supported journalism.

Wells Fargo made $19 billion in profits last year and record profits last quarter. None of this would have been possible without the bank bailout and continued borrowing of taxpayer money at zero percent interest from the Federal Reserve (which Wells Fargo and the other big banks then turn around and loan to state and local governments at much higher rates).

ACCE and its allies showed up in Salt Lake City to take a stand against a wealth-stripping machine. There will be more actions ahead against Bank of America (May 9), Sallie Mae (May 30) and Walmart (June 7). Sign up to stay informed here.

“The message from the banks is that the foreclosure crisis is over, and a lot of the general public is hearing that,” said Weeks. “But we see on the ground that that’s far from true, and that Wells Fargo continues to profit at the expense of our communities. That’s why we’re keeping up the pressure of this campaign. We’re going to fight for our communities as hard as we possibly can.”

Why do Bangladeshi factory fires keep happening? Just ask the Western free-traders-gone-wild, William Greider writes.

This Week in Poverty: Ignoring Homeless Families


A homeless family at the DC Village shelter. (AP Photo/Jacquelyn Martin)

More than one-third of Americans who use shelters annually are parents and their children. In 2011, that added up to more than 500,000 people.

According to Joe Volk, CEO of Community Advocates in Milwaukee, prevalent family homelessness is no accident.

“In 2000, we as a nation—and the Department of Housing and Urban Development—made the terrible decision to abandon homeless children and their families,” said Volk, speaking at a Congressional briefing on The American Almanac of Family Homelessness, authored by the Institute for Children, Poverty and Homelessness. “Families for a decade have been ignored.”

As the Almanac makes clear, federal attention and resources have focused instead on chronically homeless single adults—usually the most visible homeless people in communities across the country, most of whom have severe intellectual or physical disabilities. There was a recognition that it is far less expensive to place these men and women in their own apartments with access to social services—called the “Housing First” model—than to continue paying the long-term costs associated with jail time, and recurring treatment at emergency rooms and hospitals.

The federal government’s plan was to use the savings gained by reducing homelessness among single adults to fight family homelessness. But that hasn’t happened.

Since 2007, there has been a 19 percent decline in chronically homeless single adultsIn contrast, family homelessness has increased by more than 13 percent over the same period. Matthew Adams, principal policy analyst for ICPH, noted that the number of homeless school-aged children surpassed 1 million for the first time during the 2011-12 school year—a 57 percent increase since 2006-07.

“This is basically all a result of focusing our fiscal and human capital solely on single adults,” said Adams. Despite a rise in extreme poverty, a decline in affordable housing, a shortage of rental subsidies, high unemployment and a foreclosure crisis, this strategy hasn’t changed—with the exception of provisions in the Recovery Act that are now expired.

While the long-term costs of family homelessness are more difficult to quantify than are those costs associated with single adult homelessness, they are nevertheless significant and real (costs to the nation’s character aside).

The Almanac explores the toll that housing instability, poor nutrition and lack of quality health care takes on homeless children: they experience twice the rate of chronic illnesses; twice the rate of learning disabilities; and three times the rate of emotional or behavioral problems as their peers who have stable housing. Homeless children have less than half the rate of proficiency in math and reading as their housed classmates. It’s not surprising that less than one in four homeless children graduates from high school—what’s surprising is that that one child manages to graduate at all.

The McKinney-Vento Homeless Education Assistance Improvements Act is supposed to ensure that all homeless students have equal access to education. But despite the dramatic rise in homeless students since 2006, only one in five school districts receives education assistance grants to help them.

To the extent that family homelessness is on the federal government’s agenda at all—and there is a federal goal to end family homelessness by 2020 (the goal for ending single adult and veteran homelessness is 2015)—there is real concern among many advocates that HUD is attempting to use the “Housing First” approach to help homeless families. Although they agree that it has shown success with single adults, these advocates argue that it simply isn’t the right solution for many—or even most—homeless families.

“It’s a whole different dynamic for families,” said Volk, who operates shelters and permanent housing for both single adults and families.

Volk said that an intellectually or physically disabled homeless single adult is usually able to qualify for Supplemental Security Income (SSI), which is $770 per month in Wisconsin. That stable income is sufficient to rent a fully furnished apartment with utilities paid in his state. 

In contrast, a single mother must apply for Temporary Assistance for Needy Families (TANF), which in Wisconsin is $653 per month no matter the size of the family. She then must meet a work requirement, arrange for child care, buy furniture and pay for utilities, among other challenges. If her child is sick and she stays home from work, she is sanctioned by the TANF program. She might lose her $653 assistance, consequently fall behind on rent and begin her slide towards homelessness again.

Dona Anderson, director of ICHP, said there is way too much emphasis on getting families out of shelters quickly, rather than making sure they don’t return to the shelter again.

“What could we do if we could serve families in a dedicated, serious fashion for 12 to 24 months? And really address those education barriers, employment barriers, really get these families stabilized so that once they leave a shelter we don’t see them coming back?” said Anderson. “Can we address those deeper-seeded needs rather than just the initial crisis that brought them to the shelter?”

Volk agreed.

“We’re moving people out of shelters too fast and then we wonder why they don’t succeed,” he said. “They don’t succeed because we didn’t give them enough time and enough support before they moved out. We need to rethink how we work with homeless families.”

Anderson spoke of a 16-year-old in New York City who was homeless in junior high school. He lived in a shelter “targeted for him” and was able to participate in a high quality after-school program, residential summer camp, and a youth employment program. He’s now a successful student who is looking at colleges. In contrast, she met a 4-year-old homeless child in Las Vegas who has no access to a shelter, and is bouncing between motels and hotels with his father, getting by on a fast food diet. He lacks the stable environment “that kids that age especially need in order to develop and grow and be ready for school.”

“I tell these stories to illustrate the differences in how children are served, and how they aren’t served, when they are experiencing homelessness,” said Anderson.

The Almanac includes recommendations for what the 113th Congress can do for homeless families now, including: converting the mortgage interest deduction into a tax credit—as proposed under the Common Sense Housing Investment Act—in order to permanently fund The National Housing Trust Fund (NHTF) and support Section 8 rental assistance. (The NHTF was enacted by Congress in 2008 to increase the supply of affordable housing units, but it has never been funded.) There are now just 3.7 million housing units for every 10 million extremely low-income renters. Another key recommendation is to implement the reforms laid out in the Improving Access to Child Care for Homeless Families Act—pretty fundamental for homeless parents to have access to child care if they are going to find stable housing and jobs.

But the first step—the big step—seems to be this: see the problem of family homelessness, admit it and commit to doing something about it. And don’t for a second believe that working with a single adult is the same thing as working with a family with so many moving parts. 

“We can solve the problem of people living on the street for both singles and families at the same time,” said Volk. “It doesn’t have to be an either/or, and it can’t be—as long as we have children that have to live out on the streets.”

TANF: A Good News Story From the States

Guest post by Elizabeth Lower-Basch

Temporary Assistance for Needy Families (TANF)—the program created by welfare reform in 1996—is a flexible block grant, meaning that while the federal government sets some general rules, states have been given an enormous amount of control, both over the ways that they spend the federal funds they receive and over the rules that they set for families receiving TANF cash assistance. This flexibility results in an enormous amount of variation from state to state.

Most of the time, when I see an article about a state legislative proposal that affects TANF cash assistance, it’s about something bad that is happening. Outrage drives people to forward the article to their friends, to press the share button or to retweet. This is helpful—for example, the public outrage over the Tennessee proposal to punish families for children’s failure at school by cutting benefits led to the sponsor withdrawing the bill. But the good things that some state legislators are trying to do in TANF don’t always get as much attention. So, this week, I’m highlighting some of the positive developments in the states.

Asset limits: Many states have rules denying cash assistance to families who have modest levels of savings. These rules are outdated, as the low benefit levels, stringent work requirements, and time limits on benefits are sufficient to ensure that families won’t apply for TANF unless they really need the help. Moreover, these rules add to administrative costs and discourage low-income families from developing the habit of saving. In recognition of this fact, Hawaii acted this legislative session to eliminate the TANF asset limit. A California bill to exclude the value of a car from the asset limit has cleared the Assembly Human Services committee.

Family caps: Early in welfare reform history, a number of states adopted “family cap” policies, under which children who are presumed to have been conceived while the parents were receiving cash assistance are denied benefits. These caps were created to eliminate the presumed “incentive” that some felt was driving families to have more children so their cash benefits would increase. This policy has never been shown to reduce family size, but does increase child poverty and hardship among some of the most vulnerable families. The California Assembly Human Services committee has cleared a bill to repeal the family cap (known as the “maximum family grant” in California) and provide benefits to currently excluded children. This legislation is supported by a partnership of anti-poverty organizations and groups that oppose abortions.

Employment and training: The most reliable way to help families escape poverty is through employment in good jobs. However, many states spend only a small fraction of their TANF funds on employment and training programs. Massachusetts is considering amendments to the budget bill that would create and provide $2 million in funding for a “Pathways to Family Economic Self-Sufficiency” Pilot program to support a range of education and training activities related to gainful employment, including paid work-study positions, plus supportive services such as case management, job placement assistance, career counseling and funding to help with emergency needs. The Nebraska legislature is considering a bill that would use existing TANF funds to create a subsidized employment program, modeled after those created under the TANF Emergency Fund that infused federal stimulus funds into TANF during the depths of the Great Recession. This would give employers opportunities to bring on additional employees to help their businesses grow, using wage subsidies that would phase out over time, following the model that Mississippi’s STEPS program used under the Emergency Fund. Low-income workers would earn wages while acquiring valuable real work experience.

We know that when negative bills related to TANF are passed in one state, the next year there are sure to be copycat bills in other states. Hopefully, there will be a new crop of positive bills springing up this year and next, and that many of them will become law and lead to cross-pollenization of similar positive bills in other states.

Elizabeth Lower-Basch is the Policy Coordinator at CLASP, the Center for Law and Social Policy. CLASP seeks to improve the lives of low-income people by developing and advocating for federal, state and local policies to strengthen families and create pathways to education and work.

Banks Got Nowhere to Run to, Baby: From Boise to Salt Lake City

You can’t really talk about poverty and rebuilding wealth without talking about the practices of the big banks—from predatory payday lending, to unnecessary or even illegal foreclosures, to borrowing money at zero percent interest from the Federal Reserve and then lending it to state and local governments at much higher rates, all while lobbying to avoid paying taxes.

That’s why I thought the alliance between activists from Idaho, Minnesota and Oregonall coming together to challenge US Bank at its shareholder meeting in Boise this week—was so important. On Tuesday, they called on US Bank to pay its fair share in taxes; write-down mortgages to help stem the foreclosure and underwater mortgage crisis; and end payday loans with exorbitant interest rates. 

“We’re standing with the people of Idaho and folks across America who want US Bank to do the right thing,” said Rob Sisk, president of SEIU 503 and a groundskeeper at the Oregon State Capitol. “We want US Bank to stop predatory lending, whether it be to individuals or our state and local governments. US Bank needs to pay its fair share in taxes to fund critical services.”


Some of the activists who came from Oregon, Minnesota and Idaho to take action at the US Bank Shareholders Meeting in Boise. (Credit: SEIU 503)

Inside the shareholders meeting, a case was made for comprehensive foreclosure legislation that would: require banks to assign struggling homeowners a single point of contact; ban the practice of “dual tracking” where the bank is working with the homeowner on a solution while also pursuing a foreclosure; and create a mediation program to bring banks and homeowners together to discuss alternatives to foreclosure.

“A US Bank customer shouldn’t have to buy a share and drop everything to go to a shareholders meeting and demand to be treated fairly,” said Eric Fought, communications director of Minnesotans for a Fair Economy. “These banks hope that no one will fight back and for too long that was the case. In Minnesota and throughout the country, we’re making sure those days are over.”

US Bank had moved its shareholders meeting from Minneapolis—home of its corporate headquarters—to Boise, because activists dominated the meeting in Minnesota last year, too. This Tuesday, Wells Fargo will attempt to hide out in Salt Lake City after thousands of protesters descended upon its shareholders meeting in San Francisco last year.

The courageous people participating in these actions aren’t waiting on change to come from Washington—they're leading change and calling on us to join them.

How Does Congress Vote on Poverty?

Yesterday, the Sargent Shriver National Center of Poverty Law released its sixth annual Poverty Scorecard for the year 2012, grading every Member of Congress on his or her voting record in fighting poverty.

“Congress made few strides in reducing poverty last year,” said Dan Lesser, Director of Economic Justice at the Shriver Center. “It’s our hope that by sharing these grades and holding lawmakers accountable, the Shriver Center will help to spark a legislative environment that has low-income families’ best interests in mind.”

The Poverty Scorecard evaluates votes on legislation that would have had a strong impact on the US poverty level—which now stands at more than 46 million people living on less than about $18,000 for a family of three.

Please support our journalism. Get a digital subscription for just $9.50!

According to the Shriver Center, in 2012 the only significant legislation from an anti-poverty perspective that was passed by Congress and signed into law were the Middle Class Tax Relief and Job Creation Act and the American Taxpayer Relief Act. All other legislation that would have made a significant contribution in the fight against poverty was killed.

It is worth noting that members with worse grades in the fight against poverty tend to come from states with higher levels of poverty; members with good grades tend to come from states with lower levels of poverty.

700 Disability Advocates on the Hill

On Wednesday, nearly 700 disability advocates—including individuals with intellectual and developmental disabilities—fanned out across Capitol Hill to meet with members of their congressional delegations. They spoke about issues that are vital to their security and well-being, and ability to participate in our economy and society, including: Medicaid and Community Living, Social Security, Supplemental Security Income, employment and education, the UN Convention on the Rights of Persons with Disabilities and the ABLE Act.

“As we continue our efforts to protect Medicaid, Social Security and other important programs for people with intellectual and developmental disabilities, nothing is more powerful than the personal stories shared by our advocates on the Hill,” Marty Ford, director of The Arc’s Public Policy Office, told me. “They make a huge impact on their Members of Congress, and their efforts over the last two years have helped us save these lifeline programs.”

You can get involved helping to promote and protect the human rights of people with intellectual and developmental disabilities here.

Featured Campaign: Tell Wendy’s to Stop Profiting From Farmworker Poverty

Wendy’s seems content to continue profiting from farmworker poverty.

While five of the biggest fast food companies have signed onto the Coalition of Immokalee Worker’s (CIW) Fair Food Program—a historic partnership among farmworkers, tomato growers and eleven leading food corporations to advance the human rights and dignity of farmworkers—Wendy’s continues to refuse.

By adding a penny-per-pound to the price of tomatoes that they buy from Florida, participating companies have paid over $10 million since January of 2011 to help increase farmworkers’ incomes, and their commitment to buy Florida tomatoes only from growers who participate in the Fair Food Program has turned their immense purchasing power into a tool to eliminate human rights abuses in the fields.

Of the five largest fast-food corporations in the country—McDonald’s, Subway, Burger King, Taco Bell (Yum Brands) and Wendy’s—Wendy’s is the only one refusing to participate in the program.

The fast food chain claims that it doesn’t need to sign onto the Fair Food Program because it is part of an “independent non-profit purchasing cooperative.” Unfortunately, the corporation has run up against the investigative prowess of CIW—which has helped the US Department of Justice successfully prosecute six cases of farm labor servitude in Florida over the past 15 years. It’s clear that Wendy’s purchasing entity is neither “independent,” in any real sense of the word, nor even remotely adequate as an alternative to CIW’s Fair Food Program—which just last week was recognized by the White House as “one of the most successful and innovative programs” in the world to prevent and uncover modern-day slavery.

Tell Wendy’s that dealing squarely with farmworkers is far more important to you than eating square hamburgers—get involved here.

Get Involved

Demand a Higher Minimum Wage Now

New Revenues, Not Cuts, for Economic Growth

Week of Action: Confront the Corporate 1 Percent

#TalkPoverty & Take Action on Sequestration

Events

Ending Hunger Through Citizen Service: Free Training Conference (Saturday, April 20, 9:00 AM–1:30 PM, Barnard College, New York, NY). The New York City Coalition Against Hunger is working to fundamentally change the way people think about volunteering to fight hunger from once a year food drives around the holidays to long-term, skills-based, high-impact work. As part of that effort, it is co-sponsoring this conference with Community Impact at Columbia University to offer training to area nonprofits, businesses, civic groups, senior citizen groups, religious congregations, government agencies, student and youth groups and concerned individuals on how to implement structured high impact volunteer activities to better meet the long-term food needs of low-income people. Register here, free and open to the public.

Market-Oriented Education Reforms’ Rhetoric Trumps Reality (Wednesday, April 24, 9:00–10:30 AM, Economic Policy Institute, 1333 H St NW, Washington, DC). A new report from the Broader, Bolder Approach to Education employs comparable, reliable data across three high-profile “reform” districts to gauge the impacts of these policies and compare them with other large urban districts. Overall, the results are not promising. A distinguished panel of education experts will discuss the report findings and their policy implications at the district, state and federal levels. RSVP here.

Leaning In With Child Care: A Discussion On Childcare Jobs And The Need For Quality, Affordable Care (Thursday, May 9, 12:00–1:30 PM, The Aspen Institute, One Dupont Circle, NW, Suite 700, Washington, DC). The next discussion in The Aspen Institute’s Working in America series, it will cover the challenges facing working parents in need of child care as well as ideas and policies for improving the quality of jobs in the early care and education industry. Moderated by New York Times economics reporter Catherine Rampell. RSVP here.

Featured Poverty Coverage: Yesterday’s Dropouts—Adult Education in DC

This five-part series by WAMU education reporter Kavitha Cardoza examines the struggles adults face long after they leave school without a diploma. Many This Week in Poverty readers might be particularly interested in the “Changes Coming To The GED Program” story, but all are worth taking the time to check out.

Clips and other resources (compiled with James Cersonsky)

Resurrecting Brownsville,” Ginia Bellafante

Questions and Concerns Over SEPTA’s Fare Hikes and New Payment Systems,” Jake Blumgart

Working Across the Aisle to Make Affordable Housing a Reality,” Christopher “Kit” Bond and Nan Roman

Bloomberg by the Numbers,” Alleen Brown

Hundreds of Working Families Converge on Capitol,” California Labor Federation 

Sequester Impact: April 10th-17th,” Coalition on Human Needs

Poverty Drove Women Into Kermit Gosnell’s Clinic,” Bryce Covert

Poll: Voters Back Paid Sick Days, Distrust Lawmakers,” David Damron

U.S. Near Bottom of List for Child Well-Being,” Economic Hardship Reporting Project

AFL-CIO’s Non-Union Worker Group Headed Into Workplaces in Fifty States,” Josh Eidelson

Raising San Jose’s Minimum Wage: A Q&A With Marisela Castro,” Equal Voice News

Pittsburgh nonprofits work to remove stigma attached to state ‘welfare’ agency,” Kate Giammarise

Chicago student: ‘Violence will never cease until we find a way to make money out of peace', Melissa Harris-Perry [VIDEO]

Reduce poverty to improve overall health,” Carly Hood

The United States of Inequality,” Moyers & Company [VIDEO]

The Gilded City: Struggling to Survive in Mayor Bloomberg’s New York,” The Nation

Collaborating to Improve TANF Resources for Families Experiencing Homelessness,” The National Center on Family Homelessness

VITA = tax simplicity = tax reform,” National Community Tax Coalition

Sequestration Effects: Cuts Sting Communities Nationwide,” Sam Stein and Amanda Terkel

Responsible Redevelopment: Protecting Renters in Changing Neighborhoods,” Margery Turner

Market-Oriented Reforms' Rhetoric Trumps Reality,” Elaine Weiss and Don Long

State employees say LePage pressured them to deny jobless benefits,” Christopher Williams

Sequester Stalemate Cuts Legal Aid, Child Care, Housing,” Brian Wong

Studies/Briefs (summaries written by James Cersonsky)

Depression in Low-Income Mothers of Young Children: Are They Getting the Treatment They Need?” Marla McDaniel and Christopher Lowenstein, Urban Institute. Maternal depression is linked to a host of children’s developmental issues. This report parses the relationship between depression and income. In the past year, 8.8 percent of low-income mothers with children ages 0 to 5 had a major depressive episode, compared to 6.8 percent of higher income mothers. Among those affected, 69.7 percent of low-income mothers experienced severe interference with their daily life, compared to 53.5 percent for their higher income counterparts. Disparities in treatment make matters worse: 37.3 percent of low-income mothers reported no treatment, compared to 25.3 percent of higher income mothers. Among low-income mothers, insurance status widened the gap further: 49.4 percent of uninsured mothers received no treatment, compared to 33.1 percent of those with insurance. Finally, even those who do receive treatment face a variety of barriers that could make the treatment less effective. Medicaid expansion and streamlining stipulated by the Affordable Care Act, the report argues, offer some hope.

2013 Fair Housing Trends Report: Modernizing the Fair Housing Act for the 21st Century,” National Fair Housing Alliance. This report explores the scope of ongoing housing discrimination. Forty-five years after the passage of the Fair Housing Act, landlords can’t legally discriminate on the basis of race or sex, or against people with disabilities and families with children. Nonetheless, discrimination on the basis of sexual orientation is still legal in 29 states, and on gender identity in 34. Only 12 states have protections against discrimination on the basis of tenants’ source of income. In 2012, a total of 28,519 complaints were investigated by HUD, the Department of Justice, state and local government agencies or—in 69 percent of these cases—private, nonprofit fair housing organizations. The data reveal the need for a stronger, more inclusive Fair Housing Act: complaints on the basis of source of income went up 38 percent since 2011; sexual orientation, 43 percent; marital status, 63 percent; and gender identity and expression for the first time.

Vital statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: Roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Mothers who are homeless as a direct result of domestic violence: 1 in 4.

Homeless mothers who will experience domestic violence at some point: over 90 percent.

Quote of the week

“In Columbia, [South Carolina] many of our shelters won’t accept males over age 13. So if a family has an older, male child, than shelter may not be an option. So maybe a mother decides to stay in the home and put up with the physical and emotional abuse a little bit longer until she can figure out some other strategy.”
—Deborah Boone, McKinney-Vento Coordinator, Richland County School District One, Parents and Students Succeed Project. 

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again on Sundays at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: Banks Got Nowhere to Run To, Baby


A protest outside the New York Stock Exchange. (Reuters/Shannon Stapleton)

Last year, US Bank held its annual shareholders meeting in Minneapolis, Minnesota, home of its corporate headquarters. The event was dominated by shareholders and proxies who are members of Minnesotans for a Fair Economy, an alliance of community, faith and labor organizations working for a more equitable economy.

“Our members asked CEO Richard Davis direct questions about issues like principal reductions and foreclosures, and payday lending,” said Eric Fought, communications director of the organization. “We were really effective in holding them accountable, so this year they looked for another solution—to hide from us.”

On Tuesday, April 16, US Bank officers will jet from their hometown to hold this year’s meeting in Boise, Idaho. If the bankers are hoping for a better reception in this reddest of states, or that activists will take a pass on the long distance travel required to get there, then Martha and the Vandellas have a word of advice: Got nowhere to run to, baby. Nowhere to hide.

More than 100 members of the Idaho Community Action Network (ICAN)—who are mostly rural, working poor and seniors—will travel to take direct, non-violent action both inside and outside of the meeting. More than half of these individuals will be driving 3 to 7 hours to reach the venue. Their allies from Minnesotans for a Fair Economy will be there to greet them, along with workers from SEIU Local 503—the largest union in Oregon with 54,000 members.

“People are so excited that Minneapolis and Oregon are coming to support this effort,” said ICAN executive director Terri Sterling. “It helps our membership, it helps motivate them.”

Among the issues on the agenda: a call for US Bank to pay its fair share in taxes; write-down mortgages to help stem the foreclosure and underwater mortgage crisis; and end payday loans with exorbitant interest rates. These issues are of concern, of course, not only to the activists from these three states, but also to people across the country.

“Almost anywhere the banks go in the country—they will find out as they try to hide away at their meetings—there will be a set of groups agreeing that the role of banks in the economy and politics of the country is damaging,” said labor organizer Stephen Lerner, who created the Justice for Janitors campaign and is now working on Wall Street accountability campaigns.

Sterling says that even in a state like Idaho she hasn’t “found one person—red, blue, or tea party—that likes big banks.”

Idaho has the highest share of minimum wage workers in the country, and for every job opening that pays a living wage for a family of three, there are 32 job seekers. According to LeeAnn Hall, executive director of the Alliance for a Just Society, a national coalition of eight state-based community organizations (including ICAN), 4,400 families lost their homes to foreclosure in 2012. Today, 22 percent of all mortgage holders in the state are “underwater,” owning more on their mortgages than their homes are worth. In Canyon County, where approximately 12 percent of Idaho’s population resides, 66 percent of homeowners are underwater—one of the highest rates in the nation.

“Our members are doing multiple jobs to make ends meet, and often times not making ends meet,” said Hall. “As a result they are losing their homes, or using payday loans to stretch and meet their family obligations—to their detriment.”

US Bank calls its payday loan product a “checking account advance,” and it has an annual percentage rate (APR) of up to 365 percent. It also helps finance some of the largest payday loan companies in the country, including Advance America, Cash America and EZ Corp. These “easy money” businesses cluster around low-income communities and communities of color.

Sterling spoke about ICAN member Miranda Davis who was disabled at 19 but as a single mother of two kids still “works to make ends meet.” When her car broke down, she used her utility money to repair it so she could commute to work—and then she took out a $300 payday loan to cover her utility bill. She was only able to pay back the $75 per month interest, and eventually needed another $300 loan. 

“She’s now paying nearly $200 per month in interest alone,” said Sterling. “She can work as hard as she can and she won’t ever make enough money to pay off those loans.”

ICAN and Minnesotans for a Fair Economy have been pushing for a 36 percent cap in their states—the same one mandated by the federal government for members of the military and their families. Arizona, Montana and Oregon have also adopted a 36 percent cap on all payday loans.

“If they’re gonna set up a bank in my community, then by golly they should provide me with a short-term, fair lending product that’s less than 36 percent,” said Sterling.

While payday loans and overdraft fees are trapping low-income people in cycles of debt, foreclosures are draining wealth from entire communities. 

Activists will speak at the US Bank shareholders meeting about their own experiences with unnecessary, unfair and too often illegal foreclosures. Fought said that last year there was a “success” when homeowner Monique White approached CEO Davis after the shareholders meeting, told him her story, and was then able to get a modification to remain in her home.

But with more than 141,000 foreclosures in the state since 2008, 100,000 homeowners still underwater, lost home value of over $20 billion, and a cost to local governments of $1.5 billion to maintain vacant, bank-owned properties—Fought says these individual successes are hardly enough.

“We want broad solutions,” said Fought. “We know principal reductions to fair market value can solve this. We want to continue to dialogue with US Bank, but it’s been two years now—it’s time to make the solutions a reality.”

Hall said that reducing mortgages to fair market value would save Idaho families over $290 million annually in mortgage payments—money that would be spent in the community and create jobs.

“US Bank is draining resources out of families’ pockets and Idaho’s economy as a whole,” said Hall.

SEIU Local 503 is currently at the bargaining table trying to bring some of those lost resources back to Oregon. Democratic Governor John Kitzhaber is pressing for cuts in the pension fund to make up for resources that vanished in the economic meltdown. But the union estimates that Wall Street lost as much as $300 million through fraud and unethical behavior, and that they should be targeted for investigation and repayment, rather than retirees paying for Wall Street’s misdeeds. The state has $150 million to $180 million in pending lawsuits against some of these firms but the union says “that’s just the tip of the iceberg.”

Fought said that it is critical that US Bank paying its fair share of revenues in Minnesota as well—that a decade of “cuts only” budgets under former Governor Tim Pawlenty (current CEO of the Financial Services Roundtable) was “devastating for people.” He noted, for example, that the state has been forced to borrow money from school funding to pay for other bills. Meanwhile, US Bank actively lobbies for tax breaks and loopholes through the Minnesota Business Partnership.

“We need to ensure that we have adequate funding for education, health care and other human services, and because US Bank is based here, they have a unique responsibility,” said Fought. “The fact is if we want to be effective in our work for a better economy we have to look at the larger problem here—these banks are really destroying communities.”

The action in Boise is part of a broader and diverse movement that is renewing the focus on big banks and irresponsible corporate neighbors that prevent a more equitable economy. A week later, activists will be in Salt Lake City, where Wells Fargo will do its best to hide after holding its shareholder meeting last year in San Francisco. Bank of America and JPMorgan shareholder meetings are just around the corner, too. You can get involved here.

“There is a wonderful alignment developing between unions, community groups and groups focused on Wall Street accountability,” said Lerner. “Instead of having many separate fights on issues—on how to fund local government and public services, how to keep people in their homes, how to address money in politics—people are seeing that they are all connected because it’s the same giant banks at the center of so many crises.”

The President’s Budget: Important Poverty Initiatives Face Uphill Battle
Guest post by Deborah Weinstein

There are certain facts of life reflected by the FY 2014 Obama budget proposal: first, anything really worth having is going to be hard to get; and, the regrettable corollary—some things you don’t want are a lot closer to reality.

There are new and even historic anti-poverty proposals in this budget. But the better they are, the more they fall into the “hard to get” category. On the other hand, Social Security cuts in the form of smaller cost-of-living adjustments could far more easily become real. 

Still, it is a President’s duty to incorporate proposals in his budget that would increase shared prosperity, even if some may take years to achieve. President Obama includes thoughtful plans to reduce poverty: targeting job development in the poorest communities; preserving tax credits and food assistance for low-income families; carrying forward health insurance expansions, and promoting the healthy development of children from infancy on.

What’s historic in the President’s budget plan? His commitment to improving education for children from birth to five. “Preschool for All”—a $75 billion, 10-year proposal—would ensure that every low- and moderate-income four-year-old has access to a pre-kindergarten education. The money would come from an increase in the tobacco tax. The budget also allocates $1.4 billion next year for Early Head Start and child care partnerships that would increase high-quality early learning programs for infants and toddlers through age three.

The President’s budget attempts a comprehensive approach—using resources from multiple government agencies—to attack both the causes and toxic by-products of poverty. It would create 20 Promise Zones, coordinating housing, education, anti-violence and other economic development initiatives. It would more than triple funds for The Choice Neighborhoods Initiative to improve distressed HUD-assisted housing in very poor communities. It increases Homelessness Assistance Grants by about $350 million, not counting the extra across-the-board cuts now being made. The current sequestration cuts that could end rental housing vouchers for 140,000 low-income families would be reversed.

The President’s $12.5 billion Pathways Back to Work proposal would provide summer and year-round jobs and training for low-income youth and subsidized jobs and training for the long-term unemployed. There are initiatives to improve high schools and to invest in community colleges. The budget would stop cuts in food stamps scheduled to start in November.

While the last deficit reduction deal made the Bush tax cuts permanent for all but the richest 1 percent, improvements in the low-income tax credits enacted in 2009 were only extended for five years. The Obama budget makes the current levels permanent for the Child Tax Credit, Earned Income Tax Credit and the American Opportunity Tax Credit—lifting more than 9 million low-wage workers and their children above the poverty line and creating greater opportunity for low- and middle-income students to attend college.

Then there’s the bad news.

The budget slashes the Community Services Block Grant to $350 million (down from $682 million this year). These funds support community action agencies nationwide, which administer Head Start, home energy assistance, emergency food and local economic development and other anti-poverty initiatives. These agencies leverage private dollars and coordinate services—exactly the kind of efficiencies the Administration is counting on. The budget also cuts the Low Income Home Energy Assistance Program (LIHEAP) by more than $500 million. And by shrinking the annual inflation adjustment (the “chained-CPI” proposal), the Administration reduces not only Social Security benefits but also over time the value of the Earned Income Tax Credit. 

The President’s budget does include protections to reduce the impact of this lower adjustment for inflation. Social Security beneficiaries over age 76 and people receiving disability benefits for long periods will eventually receive an increase in their benefits to mitigate their loss. While the lowest-income people may in the end receive higher benefits than under current law, they will experience years of losses before their benefits catch up. (And some won’t live to see those gains.) The Administration’s proposal exempts low-income programs like food stamps/SNAP, Supplemental Security Income and Pell Grants from the “chained CPI” reductions, although there is concern that if cuts can be applied to a popular program like Social Security, these low-income programs will remain vulnerable.

Please support our journalism. Get a digital subscription for just $9.50!

While the job creation and economic development proposals are well designed, the scope is not adequate to meet the needs of the current weak economy. The President stated that his budget shows it is possible to reduce the deficit and invest in economic growth at the same time. But the Senate budget, with more revenue and more Pentagon savings, demonstrates this possibility more clearly. 

What can make the anti-poverty and job creation provisions less of a long shot? Those who care about making investments in our people have to speak out loudly about the damage from the budget cuts now in effect, and vigorously support the expansions. A groundswell of public support is now pressing Congress to pass immigration reform and prevent gun violence. We need to see that same kind of tenacity, determination and outcry for shared prosperity, too.

Deborah Weinstein is the executive director of the Coalition for Human Needs, a Washington, DC–based alliance of national organizations working together to promote public policies that address the needs of low-income people and other vulnerable populations.

Get involved

99% Power Week of Action, April 22-28

Event

Congressional Briefing: Exploring Child and Family Homelessness Across 50 States: The American Almanac of Family Homelessness (Tuesday, April 16, 9:30-10:30 AM, 2168 Rayburn House Office Building, Washington, DC). Over one-third of people who use shelters annually are families with children. In 2011, more than 500,000 parents and their children turned to shelters.While federal funding for programs targeting chronically homeless single adults has increased over the past decade—and the results have been positive—families haven’t received a similar commitment and family homelessness has increased. The Almanac—written by the Institute for Children, Poverty, & Homelessness (ICPH)—provides a comprehensive state-by-state analysis on family homelessness statistics, policies and programming. ICPH will offer this briefing and talk about proven programs and investments that can help family homelessness. RSVP here.

Pulitzer Prize-winning reporter David Cay Johnston on Income Growth, 1966-2011

"In 2011, the average income of the bottom 90 percent was just $59 more than in 1966 in real terms, depicted here as one inch. This graphic shows the comparable income growth of those within the top 10 percent."

Clips and other resources (compiled with James Cersonsky)

Working Families Flexibility Act undermines 40-hour workweek,” Eileen Appelbaum

Charles Lane Beats Up on the Disabled, Again,” Dean Baker

WSJ Finds the Real Cause of Weak Recovery: Disabled Workers,” Dean Baker

California’s Retirement Program: Imperfect, But a Potential Boon for Women and Low-Income Workers,” Sheila Bapat

Fifty years ago: A basketball title and a school boycott for Chicago,” Steve Bogira

Melissa Harris-Perry’s ‘Uncontroversial Comment’ About Children,” KJ Dell’Antonia

Even with Exemptions, Chained CPI Proposal Will End Up Hurting Low-Income People,” Shawn Fremstad

Why caring for children is not just a parent’s job,” Melissa Harris-Perry

Reduce Poverty to Improve Overall Health,” Carly Hood

 “Family Complexity and Poverty,” Institute for Research on Poverty

As Boston Ends Desegregation Busing, Students Face New Inequities,” Allison Kilkenny

Two Americas, Then and Now,” John Light

Earned Income Tax Credit Promotes Work, Encourages Children’s Success at School, Research Finds,” Chuck Marr, Jimmy Charite and Chye-Ching Huang

Poverty in Today’s America,” [SLIDESHOW] Moyers & Company

Homeless in High Tech’s Shadow,” [VIDEO] Moyers & Company

The Absence of Native American Power,” [VIDEO] Moyers & Company

Speak Your Piece: Hospital Death Rates,” Wayne Myers

The State of Homelessness in America 2013,” National Alliance to End Homelessness

Appeal for common sense in paid-prep ruling,” National Community Tax Coalition

Paid-prep rules encounter a bump in the road,” National Community Tax Coalition

Closing the Wage Gap is Crucial for Women of Color and Their Families,” National Women’s Law Center

How the Wage Gap Hurts Women and Families,” National Women’s Law Center

The Wage Gap, State by State,” National Women’s Law Center

Going to Bed Hungry,” Theresa Riley

States at Work: Progressive State Policies to Rebuild the Middle Class,” Karla Walter, Tom Hucker, and David Madland, with Nick Bunker and David Sanchez

Top 5 Myths About Chained-CPI, Debunked,” George Zornick

Studies/Briefs (summaries written by James Cersonsky)

Encouraging Savings for Low- and Moderate-Income Individuals,” Gilda Azurdia, Stephen Freedman, Gayle Hamilton and Caroline Schultz, MDRC. The goal of SaveUSA is for lower-income tax filers to deposit a portion of their tax refunds, from the Earned Income Tax Credit and other sources, into savings accounts that can later be used for unexpected expenses—and take the place of high-interest credit lines like payday loans and credit cards. Through the program, participants have at least $200 of their tax refund put into a special savings account, and keep a certain amount of that deposit in the account for a year. Those who follow through receive a 50 percent savings match, up to $500. Can a program like SaveUSA encourage longer-term saving habits and ultimately improve people’s financial health? While the evidence is still unfolding, there are glimpses of success. In a randomized trial across 17 sites offering SaveUSA, those who were placed in a non-SaveUSA control group were far less likely to deposit tax refunds into savings products. Moreover, among those in the SaveUSA group who did open an account, nearly three-quarters qualified for the savings match.

Taking Aim at Gun Violence,” Rhonda Bryant, CLASP. Between 2000 and 2010, 53,850 black men were shot to death across the country. This report maps patterns of violence onto what is too often dissociated from it: poverty, and specifically, concentrated poverty. Though most poor people in the US are white, whites are far less likely to live in neighborhoods of concentrated poverty than blacks. The lack of accessible employment for blacks living in these conditions tightens the knot: only 12 percent of black male teens are employed, less than half the rate of while male teens. How to think about tackling poverty—and violence? The report fleshes out a number of ideas: targeting investment in areas of concentrated poverty; strengthening social welfare service delivery in these neighborhoods; creating better pathways to employment; reengaging young people who have dropped out of school; and providing resources for healing from trauma and adversity.

A TANF Misery Index,” Legal Momentum. Only a fraction of families at or below poverty receive assistance from the Temporary Assistance for Needy Families (TANF) program. The “misery index” calculates how well—or poorly—TANF is doing at reducing poverty. The index is calculated as the sum of (a) the percent of poor families not receiving TANF and (b) the percent gap between received benefits and the poverty level. The totals run from 0 (all poor families receive benefits and benefits are equal to, or exceed, the poverty line) to 200 (no poor families receive benefits). The numbers aren’t pretty: since 1996, when TANF replaced the Aid to Families with Dependent Children program, the national index has gone up every year (with the exception of 2011, when it was the same as 2010). In 1996, it was 93; in 2011, 145. The numbers have varied widely by state, with California at the lowest (109) and Arkansas at highest (180).

Vital statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children.  Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: Roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Quote of the week

"If you want to move anything in Washington, DC, you first have to create an excitement and a level of energy anywhere but Washington DC. Then maybe Washington will follow, but it will never happen because you started in DC."
—Stephen Lerner, Wall Street accountability organizer and longtime DC resident 

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again on Sundays at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: Sequestration, Housing, Homelessness


A homeless man in New York. (AP Photo/Adam Nadel)

Sequestration can seem a little vague, abstract, difficult to wrap your head around.

But here’s what it means when it comes to housing: up to 140,000 fewer low-income families receiving housing vouchers, more children exposed to lead paint, higher rent for people who can’t afford it and a rise in homelessness.

These are among the human costs of sequestration noted in a new paper by Doug Rice, senior policy analyst at the Center on Budget and Policy Priorities, who has worked on housing policy for ten years.

“These kinds of cuts are really unprecedented,” Rice told me. “The Section 8 voucher program has been around for nearly 40 years—it was created during the Nixon Administration and has had strong, bipartisan support for its entire history. Part of that support has consisted of Congress providing adequate money to ensure that the vouchers currently used by families are renewed from year to year.”

But for just the third time in 39 years, Congress will not fund local housing agencies so that they can renew all current vouchers. A $938 million cut in the voucher program translates to a 6 percent shortfall below what is needed to maintain assistance to the same number of families in 2013 as last year.

“Here we are in 2013 looking at severe cuts in the number of families that receive assistance, even at a time when the number of families in need has been rising sharply,” said Rice.

Indeed, as the report notes, there are currently “waiting lists for vouchers in almost every community,” and only 1 in 4 eligible households receives a voucher or some other form of federal rental assistance. Half of the current households in the voucher program include seniors or people with disabilities, and the rest are mostly families with children. The average household income is just $12,500—well below the poverty line of about $18,000 for a family of three. 

Currently, Rice writes, about 1.5 million Americans spend some time in emergency or temporary shelters every year. Since 2007, the number of families with children living in shelters and other emergency housing has increased by approximately 32 percent.

This bleak picture is about to get worse. 

While 140,000 fewer low-income families will receive vouchers by early 2014—increasing the risk of homelessness for many families already deemed at-risk—there will simultaneously be cuts in federal funding that enables communities to assist homeless people. Emergency Solutions Grants (ESGs) are used by local communities for emergency shelters, temporary rental assistance and other services that help families avoid homelessness; these grants face up to a 34 percent cut.

“Communities will be forced to either close down shelters or cut back efforts to prevent homelessness or re-house homeless families,” writes Rice.

At the same time, Continuum of Care (CoC) grants targeting “chronic homelessness” prevention—assisting homeless individuals with mental or physical disabilities who live on the streets for extended periods—will likely be reduced by at least $180 million. (More if HUD decides to reallocate a greater proportion of these funds towards ESGs.)

“There has been a 10-year effort at the federal level to reduce chronic homelessness among individuals with significant mental health or other kinds of disabilities,” said Rice. “It is a lot cheaper to help them afford stable housing with the services they need than to allow them to languish on the streets, which costs the government more money in health care costs, trips to emergency rooms—not to mention jail.”

Some of the effects of sequestration aren’t coming down the pike—they are already here. 

Local agencies are already “shelving” vouchers, which means that they aren’t reissuing them to families on the waiting lists when other families leave the program. Agencies are withdrawing vouchers from families who recently received them but are still searching for an apartment. They are alerting current families that their assistance may be terminated later this year. They are considering raising rents on current tenants (which requires permission from the Department of Housing and Urban Development), charging fees for parking and other services or requiring tenants to pay more for utilities. The report notes that these policies “are likely to steer families into neighborhoods with more crime, lower-performing schools, and less access to jobs.”

Sequestration will also result in housing agencies receiving “only about 70 percent of the administrative funds for which they are eligible this year,” according to the report. That means less ability to perform property inspections and address “potentially serious problems” in apartments.

Due to cuts in other HUD programs, there will be reduced efforts to minimize children’s exposure to lead in older units, and decreased production of new affordable housing for low-income seniors and people with disabilities. Further, local agencies will receive only about half of the monies needed to cover new repairs and renovations this year—never mind the $26 billion backlog of capital repairs in public housing developments.

“When agencies don’t receive enough monies to operate and maintain their properties, they delay and forgo maintenance and basic repairs, and these kinds of delays can increase costs in the long-term by causing more costly structural damage,” said Rice.

At best, it means deteriorating living conditions for too many families. At worst, it means more affordable units lost to disrepair. The report notes that more than 260,000 public housing units have been demolished or removed from stock since the mid-1990s. 

Not to be lost in all of this is the effect these policies have on children over the long-term. 

“Children who experience repeated or extended periods of homelessness—especially when they are very young or in teenage years—tend to do much less well at school, [their] graduation rates are lower, and they are more likely to have certain health problems,” said Rice. “They are much less likely to be productive economically if they live in deep poverty as young kids, and part of this is a housing situation. For kids that do well in school, stable housing in a decent, safe home is a pretty important component.”

In a country where 82 percent of voters want Congress and the White House to deliver a plan to cut child poverty in half within 10 years, this is clearly not the direction in which we want to be moving.

Please support our journalism. Get a digital subscription for just $9.50!

“What we should be looking at is reducing homelessness and reducing the number of low-income families who have what HUD calls ‘worst case housing needs’—which are all households with very low incomes, paying housing costs that exceed half of their income, or they live in substandard housing,” said Rice.

Rice has done a real service with this report. The question is the same one that seems to come up again and again when it comes to issues that are important to low-income people—is anyone listening, and does anyone give a damn?

Petitions

Juicy Couture: Take Care of Your Workers

Stand with the fast food workers of New York City

Allow Advanced Practice Registered Nurses to Help Fill Primary Care Shortage

Events

TODAY at 12:15, livestreamed: “The New (Suburban) Homeless: How Foreclosures and the Great Recession Have Impacted American Families,” New American Foundation. American Prospect senior writer Monica Potts will discuss her new piece, “The Weeklies,” about suburban homelessness outside of Denver. Janis Bowdler, economic policy director of the National Council of La Raza, will participate as well. #TheWeeklies

Tuesday, April 9: NC Women’s Advocacy Day, at the state legislature in Raleigh, with NC Women United (NCWU), a coalition of organizations and individuals working to achieve the full political, social and economic equality of all women. NCWU will bring activists from across the state to urge their legislators to support issues related to the advancement of women and families, including economic self-sufficiency, access to health care, civic participation and ending violence against women. NCWU is particularly interested in maintaining the EITC and work supports for struggling families in North Carolina. Register for Advocacy Day here.

Wednesday, April 10: LIHEAP Action Day, US Congress. Supporters of the Low Income Home Energy Assistance Program from across the country will meet with members of Congress to urge them to restore funding for the federal energy assistance program. You can register here. If you can’t attend, show your support on April 10 by posting the following message on your Facebook status and in messages to your representatives: “The Low Income Home Energy Assistance Program helps millions of Americans keep their lights on and their homes livable in winter and summer. Congress, please restore funding for LIHEAP to at least $4.7 billion for FY 2014.” You can also tweet using #LIHEAPAction.

The Sequester and Seniors

Cuts to programs like home-delivered meals, senior housing and energy assistance are starting to impact seniors in need. The National Council on Aging wants to hear what’s happening in your community, and take those accounts to legislators. Share your story here

Clips on Disability

There were many inaccuracies and distortions about federal disability programs in a recent series on NPR, “Unfit for Work: The Startling Rise of Disability in America.” Below are some of the smart responses to it. You can hear more good commentary on the subject tonight at 8 PM on MSNBC’s All In with Chris Hayes. Disability is going to continue to come under attack. I’ll definitely be doing my best to stay on top of this, and I would also recommend that you follow the work of Rebecca Vallas (Consortium for Citizens with Disabilities), Shawn Fremstad (CEPR) and Kathy Ruffing (CBPP).

Disability Insurance: The Problem of Contagion in the Media,” Dean Baker

How ‘This American Life’ Got Disability Wrong,” Michelle Chen 

‘Unfit’ for NPR—Let’s Get the Facts Straight on Disability,” Consortium for Citizens with Disabilities

Supplemental Security and Temporary Assistance: How ‘This American Life’ Got the Story Wrong,” Shawn Fremstad

 “Why the disability insurance system may soon be on disability,” Melissa Harris-Perry [VIDEO]

‘There’s no such thing as a neutral story. But there is such a thing as an honest story’,” Jennifer Kates

The simple, boring reason why disability insurance has exploded,” Brad Plumer

Misleading ‘Trends with Benefits’,” Harold Pollack

The State of Disability,” Kathy Ruffing

Clips and other resources (compiled with James Cersonsky)

Setting fair wages in fast food,” All In with Chris Hayes [VIDEO]

Paid Sick Leave in San Francisco, Before and After the Fight to Pass It,” Sheila Bapat

House Republican Budget Cuts to Nutrition Assistance Are Bad for the Economy,” Melissa Boteach

Program Helps Students Talk Their Way Out of Trouble,” Patricia Leigh Brown

Sequester Impact: March 27-April 3rd,” Coalition on Human Needs

Fast food workers plan surprise strike,” Josh Eidelson 

Community fights ruin from foreclosures,” Tom Foreman/CNN [VIDEO] 

Media Coverage of Poverty: Quality, Not Just Quantity, Matters,” Shawn Fremstad

Focus, Institute for Research on Poverty

An Early Assessment of Off-Site Replacement Housing, Relocation Planning and Housing Mobility Counseling in HUD’s Choice Neighborhoods Initiative,” Martha Galvez

While corporations benefited from bailouts, employees did not,” Melissa Harris-Perry [VIDEO]

Unions call for state to sue banks and recover PERS funds,” Hannah Hoffman

The McJobs Strike Back: Will Fast-Food Workers Ever Get a Living Wage?” Sarah Jaffe 

Re: Investing in Innovation Fund Priorities,” letter to the U.S. Department of Education

Supporting School Success for Children Receiving TANF,” Elizabeth Lower-Basch

Voices of Hunger and Hope: Baltimore Witness to Hunger,” Maryland Hunger Solutions 

Promoting Employment Stability and Advancement Among Low-Income Adults,” MDRC

New conservative state policies are falling hard on women,” Tazra Mitchell

Communities Move the Minimum Wage: Will the Federal Government?” Kathy Mulady

HUD Enforcement of the Affirmatively Furthering Fair Housing Requirement,” Poverty & Race Research Action Council 

Grassroots Corner interview with Jessica Bartholow,” Ernie Powell [AUDIO]

Historic fast food strike draws lessons from MLK’s last campaign,” Ned Resnikoff

Carry On, Wayward Sons,” John Schmitt 

Penalties will hurt students, families,” Joe Soss

Minimum Wage: Not Just for the Poor,” Robin Templeton

Just Say No to Just Read, Florida, South Carolina,” P.L. Thomas

A Long Way From Home: Housing, Asset Policy and the Racial Wealth Divide,” United for a Fair Economy

Lack of paid sick leave is unhealthy for America,” Katrina vanden Heuvel

Studies/Briefs (summaries written by James Cersonsky)

A Real Fix: A Gun-Free to School Safety,” Advancement Project. Not only does increased police presence in schools have a consistent track record of making students less safe, it also draws resources from more holistic approaches that have been shown to benefit students—especially low-income students of color. This brief proposes the creation of school safety plans by teams comprising a range of school stakeholders, including parents and students. The plans should focus on three components: crisis prevention—through restorative justice practices, conflict resolution programs, mental health resources and school-family communication; school security measures involving all members of the school community; and school crisis plans in preparation for emergency.

Scarring Effects: Demographics of the Long-Term Unemployed and the Danger of Ignoring the Jobs Deficit,” National Employment Law Project. The US labor force counts 27 million unemployed or underemployed workers, and 40 percent of jobless workers have been out of work for 27 weeks or longer. This report exposes the demographics of the crisis. Those suffering the greatest are the oldest: more than half of unemployed workers at least 45 years old have been out for longer than 27 weeks. Public sector cuts have come down particularly hard on women and people of color. Black workers, for example, account for twenty percent of state and local job losses; Latino youth account for 30 percent of enrollment in federal job training programs, which have also been hit heavily. For workers across the board, the recovery has been a regressive one: low-wage job growth has been 2.8 times greater than mid- and high-wage job growth.

Hard Choices: Navigating the Economic Shock of Unemployment,” The Pew Charitable Trusts. Drawing on a mix of quantitative and qualitative data, this report breaks down the influence of unemployment on short-term economic stability—and long-term mobility and wealth. Families that experienced unemployment between 1999 and 2009 were 1.3 times more likely to lose wealth during that decade than other families (even when controlling for a variety of factors). When hit with unemployment, families tap into a variety of resources—first, assets like personal savings and home equity. But if those resources are lacking, they use monies saved for their children’s education, high-interest loans, even their own retirement funds. The report proposes a slate of remedies, including low-cost loan options for families in times of need, stronger unemployment insurance and revised tax-incentive structures to encourage emergency saving.

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

People in the US experiencing poverty by age 65: Roughly half.

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled, or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

Children living on streets or in homeless shelters, US: 1.6 million, 42 percent under age six.

Number of homeless children in US public schools: 1,065,794.

Annual cost of child poverty nationwide: $550 billion.

Quote of the Week

“Over the past few decades, politicians have made an art form out of pledging to get tough with welfare recipients. These days, hardly a week goes by without a new call to impose ‘real consequences’ on aid recipients if they don’t shape up, accept personal responsibility and change their behavior. But here’s what you should know: Social policies that focus on penalties inflict real hardships on poor families but rarely produce the promised results.”
—Joe Soss, on Tennessee bill which would cut low-income parents’ cash assistance if their children falter in school.

James Cersonsky wrote the “Studies/Briefs” and co-wrote the “Clips and other resources” sections in this blog.

This Week in Poverty posts here on Friday mornings, and again on Sundays at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: SEIU Hospital Workers Strike for Affordable Healthcare


Healthcare workers on strike. (Credit: SEIU1199 NW)

“Providence Health & Services is a not-for-profit Catholic healthcare ministry committed to providing for the needs of the communities it serves—especially for those who are poor and vulnerable.”

So reads the Providence website. But ask the members of SEIU Healthcare 1199NW what they think of the five-state healthcare giant’s commitment to vulnerable workers, and they paint a very different picture. 

More than 700 union workers went on strike in Olympia, Washington, to protest the nonprofit’s unilateral decision while at the bargaining table to switch employees from an affordable healthcare plan to a high-deductible plan. These workers at Providence St. Peter Hospital—which include everyone but the doctors, registered nurses and social workers—and the Providence SoundHomeCare and Hospice earn an average of $31,000 annually. 

SEIU says the deductibles increased on January 1 from $750 to $3,000 for family coverage, and the workers face higher co-pays as well. The Segal Company, a benefits and human resources consulting firm, estimates that the workers will pay a total of $75,000 more in premiums under the new plan while Providence will pay $437,000 less. The lower a worker is on the wage scale, the more regressive the new healthcare plan is. 

The problem isn’t that Providence is lacking in resources: the company reported $286 million in profits in 2011, and the CEO’s compensation rose from $3.1 million in 2010 to $6.4 million in 2011; the senior VP and chief administration officer’s pay rose from $1.5 million to $3.3 million; and the executive VP, western Washington region, saw his pay increase from $2.4 million to $3.5 million.

“The major healthcare provider in Thurston County is going in the wrong direction for our community,” said Thurston County Commissioner Karen Valenzuela. “[Providence] is increasing costs on workers who are least able to afford it. It’s not a good thing for our community to have workers choosing between their healthcare and other basic needs.”

Providence claims that the high deductibles will largely be offset by payments to workers for participating in a wellness plan, resulting in net deductible increases of roughly $250 for individuals and $150 for families.

But an SEIU source close to the negotiations says that the documents Providence is sharing with the union “show very different things than what they are saying in public.” Further, the wellness initiative was in place last year and only half of the eligible union members were able to meet the requirements—partly because the requirements kept changing, and partly because it was difficult for employees with irregular work schedules to meet with specific providers at prescribed times.

“I now work a second a job just to be able to afford my family’s healthcare,” said Abbey Bruce, a certified nursing assistant at Providence St. Peter Hospital. “My husband has cystic fibrosis and needs to take enzymes to absorb his food. This used to be covered, but now it costs our family $300 a month. We work in a hospital, it’s outrageous that any of us have to work a second job or worry about how we’ll afford our care.”

This dispute is one that should be of concern not only to the SEIU workers in Olympia—and 6,000 SEIU hospital workers in Seattle with a contract that expires in 2015—but any employee who isn’t well off and in optimal health. 

High-deductible “catastrophic” or “consumer directed health plans” shift the cost of healthcare from employers to employees and are a permitted form of coverage under the Affordable Care Act. According to SEIU, companies that have moved all or most of their workers to these plans include: JPMorgan, Wells Fargo, American Express, Whole Foods and General Electric. According to Towers Watson and the National Business Group on Health, nearly one-fifth of large companies said that catastrophic, high-deductible coverage will be the only kind of plan they offer in 2013.

Studies show that lower-wage workers in these high-deductible plans often skip necessary treatment in order to avoid high out-of-pocket expenses. A 2011 Rand study found a marked decrease in preventive care such as childhood vaccinations, cervical and colorectal cancer screening, and routine blood tests for people with diabetes. Even when catastrophic plans waived the deductible for preventive services, people in these plans still cut back on such care, fearing that a diagnosis would result in further expenses that they wouldn’t be able to afford. In fact, a Kaiser Family Foundation study found that people covered by catastrophic plans were twice as likely to report going without needed medical care as those in other health plans. 

It’s not only the patients who suffer under this approach, providers also often take a hit. Ellis Medicine is the largest provider of hospital services to General Electric workers and retirees in the country. As of June 30 of last year it had reported $7.8 million in bad debt, up $1 million from the year before.

“My guess is that we are seeing more bad debt coming through our ER because of high deductibles,” Ellis Medicine CEO James Connolly told The Business Review.

SEIU says that there is a much better alternative for workers and providers. The union also represents registered nurses at Group Health, a local HMO that has come out against high-deductible plans. When Group Health needed to reduce employee healthcare costs, it joined SEIU in developing a wellness initiative to focus on smoking cessation, weight management and chronic disease management. The result is that healthcare inflation was held to a total of 4 percent over four years, and last year healthcare costs actually went down. 

“We want to do this with Providence but they won’t come to the table and work with us,” said Bob Wilson, a surgical technologist at Providence St. Peter Hospital. “They prefer to slash and burn.”

Note and Question

I won’t be posting the next two weeks because I’m taking time off to hang with my 1-month-old daughter, #BabyGracieRocks. 

It’s been over a year since The Nation launched “This Week in Poverty.” I’m interested in your thoughts on how the blog has been valuable, what you think we could do better, and what we need to do to together—as my friend Dr. Mariana Chilton from The Center for Hunger-Free Communities says—“to knock down the six-foot cement wall between the people in Congress making the major policy decisions, and the rest of low-income America.”

Please comment below or email me at WeekInPoverty@me.com. I hope to post some of your responses in a future blog.

Online Petitions

Oppose Cuts to SNAP
Tell Congress to Support Earned Paid Sick Days
President Obama: Extend Labor Protections to Homecare Workers
Tell Congress: Protect Federal Nutrition Programs That Feed Our Nation’s Children
Tell Your Representative: Vote NO on the House Republican budget

New Resource on Sequestration

The Coalition on Human Needs (CHN) now offers a weekly summary of the effect of sequestration on vital programs that many of you care about—from education and family services, to housing and senior services, and more. The first report includes an item on Head Start in Columbus and Franklin, Indiana, where 36 kids weren’t allowed to return to the classroom after March 15. The cities used lotteries to choose which children were permitted to remain in the program.

“Welfare Reform”: No Model to Build On for Disability Benefits

Guest post by Rebecca Vallas

Some Republicans in Congress, including House Budget Chair Paul Ryan in the budget proposal his committee released this past week, have called for radically restructuring federal assistance programs that they term "welfare"—including Food Stamps (SNAP), Medicaid, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). They propose building on the so-called "success" of "welfare reform," which in 1996 converted Aid to Families with Dependent Children (AFDC) into Temporary Assistance for Needy Families (TANF), a block grant program with strict time limits and work requirements that today serves a minuscule share of families in need.

TANF has proven to be significantly less responsive as an anti-poverty program than its predecessor. For every 100 poor families with children, today just 27 are helped by TANF—down from 68 in 1996. The number of poor families with children helped by TANF actually declined during the recent economic downturn, which saw a huge increase in deep poverty. For those lucky enough to receive TANF, grant amounts are equal to just 30 percent of the federal poverty level (less than $5,500 per year for a family of three) in most states.

The claim that the decline in TANF enrollment is due to an upsurge in work among single mothers is flatly contradicted by the data. While the booming economy of the 1990s and early 2000s led to low unemployment and a decline in poverty, those gains have since vanished, and the share of single mothers with a high school diploma or less who are working is now back to where it was in 1996, at about 62 percent.

But facts haven't kept Republicans and even some Democrats from declaring welfare reform a "success" worthy of building on. Those who call for this sort of overhaul of SSDI and SSI say they believe that most working age people who receive disability benefits could and would work if faced with the "right" incentives. The truth is SSDI and SSI beneficiaries have severe impairments and health conditions that keep them from being able to work enough to support themselves. Many are terminally ill: one in five male beneficiaries, and one in seven female beneficiaries, die within five years of receiving benefits. Most applications for benefits are denied and less than 40 percent are approved under the strict disability standard.

Benefits, while inadequate for many, are vital. The average SSI benefit was just $520 per month in 2012—about half the federal poverty level for a single person, and just $17.33 per day. The average monthly SSDI benefit was about $1,100 in 2012, just over the federal poverty line for a single person—but a full quarter of SSDI beneficiaries live in poverty and the majority are low-income (below twice the federal poverty level). For most adult disability beneficiaries their SSI and SSDI benefits make up all or most of their income. These benefits keep millions of people with disabilities out of deep poverty and homelessness.

As with the adult disability programs, most children who apply are denied SSI, and only the most severely impaired qualify for benefits. Just 1.6 percent of US children receive SSI—compared with the estimated 9 percent who have severe disabilities. Benefits are modest (on average $619 per month for 2012) but together with Medicaid make it possible for many children to remain at home with their families instead of in an institution. Nearly half of children receiving SSI live with a working parent, yet many parents of children with disabilities are unable to work full-time due to caregiving responsibilities. SSI replaces some of the income lost when a parent cuts their hours or loses a job after one too many missed work days to care for a sick child. It also covers some of the family's out of pocket medical and disability-related expenses, many of which are not covered by Medicaid.

Unfortunately, research on the work capacity of adult disability beneficiaries is often mischaracterized. Studies are frequently described as finding that some current beneficiaries "could work," though a closer look reveals that the earning potential of that subset of beneficiaries who "could" or "should" be working is a few thousand dollars per year—hardly enough to support oneself.

Please support our journalism. Get a digital subscription for just $9.50!

Proposals to "reform" SSI and SSDI in the same way that "welfare reform" created TANF would be nothing short of devastating to children and adults with disabilities. Work requirements have no place in programs that—by definition—serve people with disabilities so severe that that they are unable to work enough to support themselves. They also have no place in the SSI children's program, whose purpose is to supplement family income when caregiving responsibilities prevent parents from full-time work. Moreover, the TANF experiment has shown what block-granting does—it weakens vital programs and makes them far less effective at increasing economic security for the people they’re intended to help.

If there’s a lesson to be learned from welfare reform, it’s that we can’t afford to make the same mistake again with other vital programs.

Rebecca Vallas is a staff attorney and policy advocate at Community Legal Services in Philadelphia. She is a co-chair of the Consortium for Citizens with Disabilities (CCD) Social Security Task Force and co-leads the SSI Coalition for Children and Families, a group of over 100 organizations working to preserve and strengthen SSI for children with severe disabilities.

March for Rights, Respect and Fair Food

On Sunday, March 17, hundreds of farmworkers from the Coalition of Immokalee Workers (CIW) and their consumer allies from across Florida rallied outside Publix corporate headquarters in Lakeland. The event marked the completion of a two-week, 200-mile trek during which marchers called on the Florida-based grocery giant to honor the breakthrough social responsibility partnership for farm labor reform known as the Fair Food Program (FFP). I wouldn’t bet against the CIW—check out their track record. Photos here, video here:

News from the Corporation for Enterprise Development (CFED)

Asset Limits: Many public benefit programs—like TANF, Medicaid and food assistance—limit eligibility to those with few or no assets. Nine states introduced legislation to eliminate asset tests (Hawaii and Illinois, for example) or exclude certain kinds of assets such as automobiles from being counted (California and Massachusetts, for example). Minnesota’s Department of Human Services offered the state legislature policy options for simplifying or eliminating asset limits across economic assistance programs. For more information, read this blog post.

Payday and Auto Title Lending: Texas, Alabama, New Hampshire and New York introduced legislation to regulate payday and auto-title lending. Unfortunately, North Carolina is considering reversing a 2001 ban on payday lending, which would allow short-term, high-interest lenders to return to the state.

Earned Income Tax Credit: North Carolina’s Senate voted to eliminate the state’s EITC and Connecticut’s governor proposed a budget reducing the credit from 30 percent to 25 percent of the federal credit. In better news, New Jersey’s General Assembly voted to fully restore the EITC and the Michigan Senate introduced legislation to restore the credit to 20 percent of the federal credit.

Individual Retirement Accounts: Illinois lawmakers introduced legislation to create retirement savings accounts for workers. Sign on to support the bill here.

Individual Development Accounts: IDA programs consist of matched savings accounts that enable low-income families to save, gain assets and enter the financial mainstream. Indiana’s proposed state budget would cut IDA funding in half from $1 million to $500,000. Indiana Institute for Working Families is pushing the Senate Appropriations Committee to restore funding.

Event: Ending Hunger Through Citizen Service
The New York City Coalition Against Hunger is spearheading a new long-term, nationwide initiative to redefine the way people think and act when it comes to volunteering to fight hunger. As part of that effort, the organization will co-sponsor a conference in Dallas, Texas, with the North Texas Food Bank, Texas Hunger Initiative and USDA Food and Nutrition Service: Friday, March 22, 9 am–4 pm (Wilshire Baptist Church, 4316 Abrams Rd, Dallas, TX 75214). More information here.

HBO’s American Winter Premiers Tonight

This documentary about eight families in Portland struggling through the recession is a must-see, and it premiers tonight on HBO. Thanks to host Economic Policy Institute (EPI) and cosponsor The Nation for last week’s screening and terrific panel discussion that included filmmakers Joe and Harry Gantz, two families in the film—Diedre and Jalean, and Brandon, Pam and Jude—and policy experts Elaine Weiss, Algernon Austin and Mariana Chilton.

Clips and other resources (compiled with James Cersonsky)

Infrastructure investments and Latino and African American job creation,” Algernon Austin

The City On Baltimore’s Homelessness Problem Following Camp 83,” The Anthony McCarthy Show [AUDIO]

In City Terms, What the Sequester Means,” Jake Blumgart 

Right to Lawyer Can Be Empty Promise for Poor,” Ethan Bronner

Raising the federal minimum wage to $10.10 would give working families, and the overall economy, a much-needed boost,” David Cooper and Doug Hall

What Paul Ryan’s Budget Means for Women,” Bryce Covert

Activists target Comcast over paid-sick leave lobbying,” Daniel Denvir

In Virginia, child care doesn’t command the attention it deserves,” Petula Dvorak

Top Democrats Differ on Ending Subminimum Wage for Workers with Disabilities,” Mike Elk 

Sandberg left single mothers behind,” Susan Faludi

Haunted by Julio’s Injustices, and Our Responsibility for Them,” Steven Farr

Health Problems Compound For Aging Homeless,” Pam Fessler

We Shouldn’t Have To Live Like This,” Pam Fessler

Research ties economic inequality to gap in life expectancy,” Michael A. Fletcher

State budget testimony discusses ways to improve Ohio’s public assistance programs,” Jack Frech, Athens County Job & Family Services

New CBO Estimates Show How Shifting to Chained CPI Would Harm Poorly Compensated Workers and Others Struggling to Afford the Basics,” Shawn Fremstad

Relative Poverty Measures Can Help Paint a More Accurate picture of Poverty in America,” Shawn Fremstad

Why is there so little coverage of Americans who are struggling with poverty?” Dan Froomkin

Big win for workers in Portland and (hopefully) Philadelphia,” Elise Gould

Chairman Ryan Gets 66 Percent of His Budget Cuts from Programs for People With Low or Moderate Incomes,” Richard Kogan and Kelsey Merrick

Better Colleges Failing to Lure Talented Poor,” David Leonhardt

AP: Lawyers say thousands wrongly lost Medicaid,” Marc Levy

Let the Borrower Beware: Facing the Facts about Payday Loans and Pawnshops,” Gregory Mills 

In the South and West, a Tax on Being Poor,” Katherine S. Newman

Unfair Punishments,” New York Times

City Council Approval of Paid Sick Days Standard Puts ‘A Healthier, More Economically Secure Portland on the Horizon,’” Debra L. Ness

TANF Emerging from the Downturn a Weaker Safety Net,” LaDonna Pavetti, Ife Finch and Liz Schott

Ryan Budget Includes Medicaid Block Grant That Would Add Millions to Ranks of Uninsured and Underinsured,” Edwin Park

Southeast Kansas Winter Homeless Count,” Jennifer Penate

25 Years of Working with Chicago Public Housing: Personal Stories,” Susan Popkin

Ryan Budget Would Slash SNAP Funding By $135 Billion Over Ten Years,” Dottie Rosenbaum

Minnesota minimum wage hike cheered by workers; employers critical,” Matt Sepic

Sequester set to sock it to D.C.’s poorest,” Michael Shank

One Economy, Two Americas,” Hedrick Smith

Poor people in Ohio don’t get a lot of help,” Thomas Suddes 

Raising Minnesota,” Gabriel Thompson

City clears homeless camp, residents in temporary housing,” Yvonne Wenger 

The Paid Sick Leave Battle Widens in the States,” George Zornick

Some Notable Studies and Reports (summaries written by James Cersonsky)

Out of Reach 2013,” Elina Bravve, Megan Bolton, Sheila Crowley, National Low Income Housing Coalition. The number of households that rent instead of own their homes rose by one million in 2011—the single largest one-year increase since the early 1980s. Though renting can be cheaper than buying, renters are finding it increasingly difficult to make ends meet. This report estimates a 2013 “housing wage”—that is, what a household would have to bring in to afford a decent apartment at HUD’s Fair Market Rent, while spending no more than 30 percent of income on housing—of $18.79. The average hourly wage of renters, though, sits at $14.32. Why the gap? The report cites a number of factors: rising rents, stagnating wages and a shortage of affordable housing units. The biggest solution, it says, is to expand the supply of these units—on the order of 4.5 million—to meet the demand from extremely low-income households with incomes at or below the regional median.

Family Independence Initiative: The Role of Control, Options, and Social Connectedness in Economic Mobility for Families,” Melanie Moore Kubo, PhD and Suki McCoy, See Change. Through the Family Independence Initiative (FII), families meet regularly for mutual support and have access to a resource bank for various financial and social tools—creating what FII calls “environments of opportunity.” This independent study looks at Boston families who worked with FII over the course of two years. The study shows a slate of positive results, including: half of families who lived below the federal poverty line had risen above it in two years; earnings rose 27 percent; savings rose 187 percent; and 91 percent of families (compared to 27 percent at the outset) reported that they could count on others in their community for support.

Putting Sustainability on the Table: Airport Workers’ Vision for $3 Billion of Food and Drink at O’Hare,” UNITE HERE! At O’Hare International Airport, the second biggest airport in the country, the City of Chicago is set to give away $3 billion in contracts to food concession companies. For this report, UNITE HERE—which represents workers in the hotel, gaming, food service, manufacturing, textile, distribution, laundry and airport industries—surveyed workers and customers on the guidelines that they’d like to see the city set for the food and work that is on its way to the airport. Among other things, surveys reveal that 78 percent of passengers and 89 percent of workers would like to see food cooked from fresh ingredients, and 89 percent of workers think there should be more food service training opportunities to step up the job ladder. The report offers a variety of recommendations for O’Hare moving forward: requiring bidders to provide plans for fresh cooking, local produce purchasing and disposal management; ensuring every outlet includes healthy options for a variety of diets; requiring job stability for existing airport workers; and investing in a worker training program. 

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Households with children in large cities that are food-insecure: 25 percent.

People in the US experiencing poverty by age 65: roughly half.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Impact of public policy, 2010: without government assistance, poverty would have been twice as high—nearly 30 percent of population.

Percentage of entitlement benefits going to elderly, disabled, or working households: over 90 percent.

Food stamp recipients with no other cash income: 6.5 million people.

People experiencing homelessness on any given night, US: 643,067.

Children living on streets or in homeless shelters, US: 1.6 million, 42 percent under age six.

Number of homeless children in US public schools: 1,065,794

Annual cost of child poverty nationwide: $550 billion.

Quote of the Week

“There’s a 6-foot cement wall between people in Congress making the major policy decisions, and the rest of low-income America. Low-income Americans have practically no way to penetrate the workings of Congress, to express their opinions and to be taken seriously. In addition, people in Congress cannot and do not seem to try to understand what’s really happening on the ground with their policies.

"What we need is a creative revolution to break down the walls that separate us from Congress. The wisdom and the ideas of the families who are struggling in this country must be heard if we are going to succeed at changing things for the majority of America.”

     —Dr. Mariana Chilton, Center for Hunger-Free Communities, at EPI/Nation screening of American Winter.

James Cersonsky wrote the “Notable studies” summaries and co-wrote the “Clips” section in this blog.

This Week in Poverty posts here on Friday mornings, and again on Sundays at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

This Week in Poverty: 'A Place at the Table' and 'American Winter'


City Harvest Mobile Market food distribution site, New York. (Reuters/Shannon Stapleton)

A Patriotic Fix for America’s Hunger Epidemic

Guest post by Michael Shank

One nation, underfed.

That’s the tagline for the new film out by Participant Productions, entitled A Place at the Table, which looks at America’s growing hunger epidemic. Participant Media, which produced Lincoln, The Help and Food Inc., does not disappoint with its latest take on what America must tackle. And in light of the March 1 sequester cuts to social programs, the film’s timing couldn’t be more appropriate.

Table’s statistics are overwhelming, but they are intended to overwhelm. Whether it’s the 50 million Americans who are living in food-insecure households (which means they are struggling with hunger), or the fact that 1-out-of-2 kids in America will, at some time in their childhood, have to rely on federal assistance for food. This is happening in the richest country in the world, and the problem is only getting worse. Under President Reagan there were 20 million Americans living with food insecurity. We’re well over double that figure now.

Table’s stories will overwhelm too. Whether it’s the fifth grader who is so hungry that she envisions her teacher as a banana and her fellow students as apples, or the single mother of two who finally gets a fulltime job only to realize that she is no longer food stamp eligible, a loss of $3-per-day that puts her family into serious food insecurity. That means her kids no longer have breakfast or lunch at daycare, and her youngest is already developmentally disabled due to improper nutrition. Lest we think she’s living large off her new job, food stamp eligibility ended once her salary passed $23,000, a figure hardly sufficient to pay for rent, utilities, insurance and transport, let alone food. (Most Americans are surprised to learn that the parents of hungry children typically have fulltime jobs.) Those who think food stamps breed dependency are wrong. As a child, raised singly by my mom after my dad died early, I too depended on food stamps. For many of us, they are critical lifelines of support while we get back on our feet.

Actor-director Jeff Bridges, who is featured in the film for his fight against chronic hunger, says we’re in denial about malnutrition in America, a country that maintains the highest rates of food insecurity in the International Monetary Fund’s ranking of advanced economies. The fix could be so patriotic; what could be more patriotic than caring for the nation’s children? But Bridges goes further: We would go to war with any country that did this to our kids. How true.

So what’s the hang-up? Why is it so difficult to feed America’s future properly? When all expenses are accounted for, we spend roughly $1 per child per school meal. One wonders why President Barack Obama couldn’t get the $10 billion over ten years that he wanted to improve childhood nutrition in schools. (Contrast this with the $10 billion we spend monthly on our military in Afghanistan.) In fact, Obama was only able to get $4.5 billion allocated—improving by .06 cents what we spend on children’s lunches—and much of that was paid for by siphoning money from the food stamp program. The irony.

The film’s producers hold lobbyists particularly culpable here. Congress, for example, had no problem doling out hundreds of billions to bail out big banks, expending hundreds of billions on tax cuts for the wealthy, or even subsidizing tens of billions to big corporate agribusinesses, which is what farms America’s soil these days (not the small farms that relied on federal assistance after the Depression destroyed America’s crops). And yet Congress claims to have insufficient funds—not even $10 billion over ten years—to bail out the millions of kids in this country who go malnourished every day.

It’s shocking and deplorable. In 1980, we had 200 food banks. Now we have over 40,000 food banks, soup kitchens and pantries, and yet the problem persists. Our government thought charities could pick up the tab. While they’re certainly helping with critical lifeline support, they don’t have the kinds of resources necessary to take on a crisis of this magnitude—only the federal government does.

Here’s a big part of the problem: Fresh fruits and vegetables—largely unsubsidized in comparison to the heavily subsidized corn, wheat, soy, and rice crops—remain out of reach for much of America’s poor, both rural and urban. Since 1980, costs for fruits and vegetables increased by roughly 40 percent leaving financially struggling families with little choice when it comes to cheapest calories at the local mini-mart. Junk food is often all that’s affordable and accessible, with fresh food markets located many miles away.

But beyond reforming the formidable lobby that prevents Congress from fixing kids’ nutrition in America, the film hints at what else is needed. At the end of the day, even if we’re funding healthy meals for all Americans and feeding our kids properly, we haven’t fixed the root problem of poverty. While we’ve cut down on long-term healthcare costs—because a better fed population means lower rates of heart disease, diabetes and blood pressure, all of which will lower the taxpayer burden—a systemic flaw remains: if working American families aren’t afforded a livable wage, then we will forever be reacting to hunger, not preventing it.

The first step is to ensure all Americans have access to affordable and healthy food, but the second and simultaneous step is to lift the 50 million Americans out of poverty and the 106 million Americans who live on less than twice the poverty line (less than $36,000 for a family of three). We can start by reversing trade trends, which undermined America’s working class through the outsourcing and offshoring of US manufacturing and the erosion of labor protections. We can also reinvigorate US labor policies, which failed to increase minimum wages for the majority of America. The minimum wage is worth less now—adjusted for inflation—than it was in 1968.

The president’s State of the Union promises to raise the minimum wage and rebuild American manufacturing is a start, but more is needed. If we want to reserve “a place at the table” for everyone in America, we must first start by making sure that everyone has access to that table.

Michael Shank is a senior aide to a Democratic member of Congress and a professor at George Mason University’s School for Conflict Analysis and Resolution.

American Winter Screening and Discussion

Since the beginning of the Great Recession, I’ve been waiting for a documentary to make the case that low-income people and the middle class are now in the same boat—that old distinctions people created to divide them are obsolete, with so many people living near poverty, or an illness, lost job, or disaster away from poverty.

A hundred and six million Americans, or more than one in three, now live below twice the poverty line—on less than $36,000 for a family of three, forced to make choices between basic necessities like food, housing, healthcare and education, and with little to no savings to help through tough times; wealth is increasingly concentrated, with the richest 1 percent now possessing 40 percent of the nation’s wealth. Certainly the numbers suggest a convergence of interests among the poor and non-rich.

Now, finally, a movie has arrived that shows the precariousness of the US economy for the majority of Americans, refusing to distinguish between a deserving and non-deserving poor: American Winter.

Filmed over the winter of 2011–12 in Portland, Oregon, the documentary tells the stories of eight families, showing the human costs of a frayed safety net and a proliferation of low-wage work. Emmy Award–winning filmmakers Joe and Harry Gantz, creators of HBO’s Taxicab Confessions, worked with the nonprofit organization 211info in Portland, monitoring calls from distressed families who were turning to the emergency hotline in search of help. They then followed the stories of some of these callers over many months.

Most of these families never imagined they would be in the situation they suddenly find themselves in, needing support to get through a tough time, and finding that that support just isn’t there: a husband loses his job, he and his wife try to support their three kids on her minimum-wage work, losing heat and electricity in the dead of winter in order to pay the mortgage; a 50-year-old accountant is laid off and struggling to care for his 10-year-old son who has Down Syndrome, now faces the loss of his ranch and sole asset to provide for his son’s future; a husband loses his $22-per-hour job, and his wife and their two sons turn to a women’s shelter for assistance; a college-educated woman is laid off and so she sells scrap metal and donates plasma to help support her family of five—even after she finds minimum-wage work; a woman’s husband dies, and she and her 11-year-old son can’t keep their home—they sleep in a garage and in their car before ending up in a shelter; another mother has to take three months off of work to care for her daughter who is hospitalized with a stomach condition—she’s stuck with a $49,000 bill that insurance won’t cover.

“Forget the dreams, how do we make it to tomorrow?” says a father. Laid off from the credit branch of a car company, he and his wife lose their home to foreclosure and now struggle to provide their kids with the basics. “Tomorrow’s the dream. This dinner is the dream. You can turn the water on, turn the lights on—that’s a dream.”

Please support our journalism. Get a digital subscription for just $9.50!

Woven into the film are interviews with local economic experts, policy analysts, religious leaders and social workers, all of whom provide context for the families’ stories.

“If capitalism is not regulated or checked, there is a harsh logic and it will always seek out the lowest costs, highest return, which is why we have historically viewed government as a check and a balance on that,” says Portland City Commissioner Nick Fish. “Over the last quarter century, we have reduced regulations, degraded wages, cut back on health care, we’ve reduced taxes, and now people are more vulnerable…. We have a “one strike, and you’re out’ economy.”

As we now begin sequester cuts that will further strain supports to working families and families that are unable to work, this is a timely movie, to say the least.

I’m very pleased to be moderating a great panel following a screening of the film at the Economic Policy Institute (EPI) next Thursday. The panel will include filmmakers Joe and Harry Gantz; Diedre and Jalean, a family featured in the film; Elaine Weiss, national coordinator of the Broader, Bolder Approach to Education; Algernon Austin, director of the Program on Race, Ethnicity, and the Economy at EPI; and Mariana Chilton, director of the Center for Hunger-Free Communities at Drexel University School of Public Health. Senators Sherrod Brown and Jeff Merkley have also been invited.

You can find the details and RSVP for the event here.

“Tax loopholes for corporate Jets or Investments in Jobs and Education?”

That’s the question posed in a terrific infographic by Melissa Boteach, director of the Half in Ten Campaign and the Poverty and Prosperity Program at the Center for American Progress. Boteach has a real knack for showing the values behind Congressional budget decisions. Check this out:


Read more at the Center for American Progress

Recognized: Hunger Free Vermont

The Food Research and Action Center (FRAC) has awarded the Dr. Raymond Wheeler/ Senator Paul Wellstone Anti-Hunger Advocacy Leadership Award to Hunger Free Vermont. FRAC presents the award annually to an advocate who has demonstrated outstanding leadership in the fight against hunger.

Hunger Free Vermont has made key contributions toward ending food insecurity among children, adults, and seniors in their state. Thanks in part to the work of this organization, Vermont is in the top ten states for participation among low-income children in school breakfast and summer meal programs, and is one of the best states for enrolling eligible citizens in the SNAP program.

Hunger Free Vermont has also launched creative new initiatives such as an accredited online course for physicians, nurses and clinical staff to learn patient screening techniques for hunger and malnutrition.

“Not only does Hunger Free Vermont work effectively within the state to create change, but the organization also has made it a priority to mentor other anti-hunger organizations in New England and across the country,” said Jim Weill, president of FRAC

Hunger Free Vermont is now working with the Vermont legislature and Governor Peter Shumlin to make the state the first in the nation to offer free school meals to all low-income children.

Women and the Minimum Wage

This week, Senator Tom Harkin and Representative George Miller introduced The Fair Minimum Wage Act of 2013 that would raise the federal minimum wage from the current rate of $7.25 to $10.10 per hour by 2015, and index it to keep pace with inflation. The bill would also raise the minimum wage for tipped workers from $2.13 per hour, where it has been frozen since 1991, to 70 percent of the full minimum wage.

The National Women’s Law Center notes that two-thirds of adult minimum wage workers are women, and women are the majority of workers in the ten largest occupations paying less than $10.10 an hour:


Read more at the National Women’s Law Center

Petitions

Tell Congress: Don’t Let Food Workers Go Hungry

Tell Mayor Bloomberg it’s time for a better approach to homelessness

Clips and other resources (compiled with James Cersonsky)

You’ll Never Live Like Common People,” Alex Andreou

Mother who stole son’s education gets 12 years in prison,” Associated Press

A New Direction for Restaurant Workers? Zingerman’s and the ‘Thrivable Wage,’” Sheila Bapat

Jeff Sessions Isn’t a Wonk McCarthyite, or a Wonk Anything,” Jonathan Chait

INFOGRAPHIC: How Universal Preschool Is an Economic Boon to Working Mothers,” Bryce Covert

McDonald’s Guest Workers Stage Surprise Strike,” Josh Eidelson

 

‘Harlem Shake’ craze needs historical, cultural context,” Melissa Harris-Perry

Strike Debt Declares Healthcare Emergency: It’s a Matter of ‘Life or Debt,’” Allison Kilkenny

Mooching Off Medicaid,” Paul Krugman

SNAP: Just What the Doctor Ordered,” Helly Lee

Income Inequality Goes Viral,” John Light

Five Bills That Would Have Been Game Changers for Women,” John Light and Theresa Riley

Waiving Work Requirements in the TANF Program,” Elizabeth Lower-Basch

Drug Testing of Safety-Net Applicants Stigmatizes Poor Families,” Elizabeth Lower-Basch and Lavanya Mohan

As Automatic Budget Cuts Go Into Effect, Poor May Be Hit Particularly Hard,” Annie Lowrey

Improving College Readiness in the Age of the Common Core,” MDRC

The Role of Risk: Mentoring Experiences and Outcomes for Youth with Varying Risk Profiles,” MDRC

Steering America toward a more secure retirement,” Harold Meyerson

When Jobs are Needed, Grassroots Groups Spring to Action,” Kathy Mulady

Fair Pay for Women Requires Increasing the Minimum Wage and Tipped Minimum Wage,” National Women’s Law Center

The 10 Largest Jobs Paying Under $10.10/Hour Are Majority Women,” National Women’s Law Center

It Is Too Hard for Students to Access Financial Assistance,” Abigail Newcomer and Lavanya Mohan

Sequestration Could Deny Nutrition Support to Up to 750,000 At-Risk Low-Income Women and Children,” Zoë Neuberger

Rick Snyder’s Detroit Takeover Plan Is Not What Democracy Looks Like,” John Nichols

50k homeless in NYC shelters nightly, report says,” Jennifer Peltz

Worker-Owned Cooperatives—A Resilient Model for Grassroots Economic Development,” Meche Sansores

How to Craft an After-School Program That Doesn’t Suck,” Dylan Scott

Where Are the Women in the Sequestration Debate?” Katrina vanden Heuvel

Notable Studies and Reports (summaries written by James Cersonsky)

Stacked Deck: How the Dominance of Politics by the Affluent & Business Undermines Economic Mobility in America,” Dēmos. As this report argues, economic equality faces an uphill battle: “Over recent decades, the wealthy have translated their wealth into political clout, and used that clout to increase their wealth—which in turn has further increased their ability to secure yet more special treatment through public policy.” The influence of the wealthy ranges from political contributions slanted toward regressive ends to higher voting rates and contact with elected representatives. Turning the tide, the report says, will take the kitchen sink: limiting, and making more transparent, money in politics; making voting easier and stamping out voter suppression; redefining corporate personhood; enacting a more progressive tax code; and strengthening workers’ power in the workplace.

Consider the Source: 100 Years of Broken-Record Opposition to the Minimum Wage,” National Employment Law Project & Cry Wolf Project. Opposition to the minimum wage is nothing new. This study, the first of its kind, charts the trajectory of anti-minimum wage arguments over time. What it reveals is a patently broken record: despite significant economic and political change over the past century, objections to the minimum wage have changed little in substance. Three themes stand out: raising the wage would hurt the economy; it would hurt the workers it is intended to help; and it violates American standards of “freedom” and “liberty.”

Real People, Real Solutions in North Carolina,” NC Community Action Association. At 17.9 percent, North Carolina’s poverty rate sits two points above the national average. This report gives a textured profile of poverty across the state. The numbers paint a grim picture: 16 percent of the state lacks health insurance, 27 percent earns less than $25,000 and 21 percent of households are food insecure. Over half of households living in poverty are led by single women. In addition to providing comprehensive recommendations for different sectors—healthcare, employment, education, transportation and housing—the report proposes a number of state initiatives to mitigate the crisis: a bipartisan Poverty Eradication Council in the state legislature to ensure strategic and collaborative use of state funds; a Public Benefit Fund to relieve high energy costs; centralized management of funding from Community Service Block Grants and the Weatherization Assistance Program; and inclusion of the state’s 36 community action agencies in the state’s general fund, with anticipated returns of $16.90 on the dollar.

Occupational Projections for Direct-Care Workers, 2010-2020,” PHI. In an analysis of data released by the Bureau of Labor Statistics, this report projects an increase of 1.6 million new jobs in the direct-care workforce—that is, nursing aides, home health aides, and personal care aides—by 2020. This increase, hovering around 70 percent, would make it the largest job sector in the country. The rise in demand for home and community-based care is responsible for a large chunk of the overall projection: between 2010 and 2020, workers in these settings are expected to increase their share, vis-à-vis those in facility settings, from 61 to 68 percent. Over the same period, however, the main demographic of direct-care workers, women between the ages of 35-54, are only projected to enter the workforce at a 1 percent increase. How to close the gap? For one, increase the quality—and attractiveness—of these jobs through federal and state spending on decent wages, benefits and training.

Vital Statistics

US poverty (less than $17,916 for a family of three): 46.2 million people, 15.1 percent.

Children in poverty: 16.1 million, 22 percent of all children, including 39 percent of African-American children and 34 percent of Latino children. Poorest age group in country.

Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans, including more than 15 million women and children.

People who would have been in poverty if not for Social Security, 2011: 67.6 million (program kept 21.4 million people out of poverty).

Gender gap, 2011: Women 34 percent more likely to be poor than men.

Gender gap, 2010: Women 29 percent more likely to be poor than men.

Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1 in 3 Americans.

Households with children in large cities that are food-insecure: 25 percent.

People in the US experiencing poverty by age 65: Roughly half.

Jobs in the US paying less than $34,000 a year: 50 percent.

Jobs in the US paying below the poverty line for a family of four, less than $23,000 annually: 25 percent.

Poverty-level wages, 2011: 28 percent of workers.

Low-income families that were working in 2011: More than 70 percent.

Families receiving cash assistance, 1996: 68 for every 100 families living in poverty.

Families receiving cash assistance, 2010: 27 for every 100 families living in poverty.

Food stamp recipients with no other cash income: 6.5 million people.

People experiencing homelessness on any given night, US: 643,067.

Children living on streets or in homeless shelters, US: 1.6 million, 42 percent under age 6.

Annual cost of child poverty nationwide: $550 billion.

Quote of the Week: “For the middle-class in this country we have a ‘one strike, and you’re out’ economy. The system that was once in place to cushion those crises has been frayed. The most endangered species in America is the middle-class family. I think we have to be alarmed by that and ask whether that is good policy.”
      —Nick Fish, Portland City Commissioner, in American Winter

James Cersonsky wrote the “Notable studies” summaries and co-wrote the “Clips” section in this blog.

This Week in Poverty posts here on Friday mornings, and again on Sundays at Moyers & Company. You can e-mail me at WeekInPoverty@me.com and follow me on Twitter.

School Breakfasts and Ending Child Hunger


(Reuters/Mario Anzuoni)

Five years ago, Share Our Strength CEO Billy Shore began to wonder why the number of hungry kids in the US hadn’t declined significantly since 1984, when he and his sister founded the anti-hunger organization.

“We knew that it wasn’t because we lack food as a nation—we obviously enjoy an abundance,” said Shore, speaking with reporters in New York City at the release of a new report from Share Our Strength and Deloitte, “Ending Childhood Hunger: A Social Impact Analysis.” He was joined by US Secretary of Agriculture Tom Vilsack, actor and longtime anti-hunger activist Jeff Bridges and others. “And it wasn’t because we lack food or nutrition programs—we have school lunch and school breakfast, SNAP, WIC and others. So we felt it had to be because children weren’t accessing those programs.”

Shore said the extent to which children don’t access food nutrition programs is best described by “the big gap” between the 21 million low-income students who receive a free school lunch—all of whom are eligible for free breakfast—and the 11 million who eat school breakfast.

“So just a little over 50 percent of the kids who are eligible actually get the breakfast that they really need to perform well in school and be healthy kids,” said Shore.

Shore and Bridges began traveling across the country as part of Share Our Strength’s “No Kid Hungry” campaign to speak with governors about “how to knock down the barriers in their states to get more kids enrolled.”

“Both Democrats and Republicans want to do the right thing when they hear of the problem, the solution and that the resources are there to implement the solution,” said Shore, noting that the funding comes largely from the federal government.

They new report shows the dramatic effect that the School Breakfast Program can have on children’s academic, health and economic futures. It notes that in 2011, nearly 15 percent of US households were “food insecure,” or at-risk of hunger. Households with children were nearly twice as likely to be food insecure as households without children. As a result, more than one out of five kids struggled with hunger. When Share Our Strength surveyed 1,000 K-through-8 teachers—evenly divided between rural, urban and suburban schools—three out of five said they have students in their classrooms that regularly come to school hungry.

The study makes the costs of food insecurity clear: In early childhood, it’s associated with impaired brain development and more frequent hospitalizations. Across children of all ages, it’s linked with lower academic achievement. Hungry children are 31 percent more likely to be hospitalized, at a cost of $12,000 per pediatric hospitalization.

In contrast, the new research demonstrates that students who participate in the School Breakfast Program attend 1.5 more days of school annually, score 17.5 percent higher on math tests, and are less likely to have disciplinary issues. The study concludes that if just 70 percent of kids eating a free- or reduced-price lunch were also eating school breakfast, the potential national impact would be 3.2 million more students per year achieving better scores on standardized math tests; 4.8 million fewer school absences a year; and, as a result of greater attendance and higher achievement, 807,000 more students graduating from high school.

According to the study, high school graduates typically earn $10,090 more annually and are half as likely to experience poverty and hunger as an adult than non-high school graduates.

“Just when everyone thinks that we can’t afford to invest in programs like these, the report shows that we can’t afford not to,” said Shore. “Because the long-term benefits are so strong, so compelling, so good for kids, so good for the economy and schools, it enables us to look at this issue through a different lens.”

The No Kid Hungry campaign is now working directly with schools to increase breakfast participation. The traditional school breakfast is served in the cafeteria before school begins. It’s often difficult for low-income students—particularly those who rely on public transportation—to arrive early enough to eat. Additionally, there is a social stigma associated with being “one of the poor kids” eating breakfast in the cafeteria. So, the campaign provides technical assistance and small grants to help schools work on alternative models that make breakfast part of the school day, including in the classroom.

Lesley-Anne Jones, a fifth grade teacher at PS 158 in Brooklyn, said that her school has a breakfast program from 7:30-8:00, and that too many students are unable to arrive in time to take advantage of it. With the help of Share Our Strength, the school implemented a breakfast in the classroom program for kindergarten and first grades. When her fifth grade students come to school hungry, Jones tells them to go to the younger classrooms and grab “a bag of breakfast.”

“Before the program, kids would come in hungry and some would be a little sluggish and say that their stomach hurts—they didn’t realize their stomach hurt because they were hungry,” said Jones. “Now, they get their breakfast, they’re good to go: it helps with discipline problems, focusing, state exams.”

She noted that prior to this program, teachers would bring in breakfast for the students on the day of state exams, knowing that a meal would help their performance. She would like to see the program expanded to include every grade at her pre-K through fifth grade school.

Please support our journalism. Get a digital subscription for just $9.50!

The collaboration between Share Our Strength and Maryland Governor Martin O’Malley perhaps presents the clearest case of what can be achieved by increasing school breakfast participation. Since 2011, more than 130 Maryland schools are in the process of moving breakfast from the cafeteria into the classroom. Student participation in the program increased from 46 percent of eligible students in September 2010 to 56 percent in September 2012.

“So the state has added 33,000 kids in the last two years, and has 57,000 to go to get to where we should be. The governor is absolutely confident we’re going to get there,” said Shore.

The study suggests that the program can have the greatest impact on students in high-poverty schools who are at the greatest risk of food insecurity. In Maryland, students in schools with 80 percent low-income students that moved breakfast into the classroom were 6 percent less likely to be chronically absent than similar schools with a traditional school breakfast model; and there were nearly 10 percent more students in these schools achieving math proficiency than in similar schools with traditional breakfast models.

The report indeed offers a clear and compelling vision of what can be achieved by making the most of one tool to fight hunger. It caused me to reflect on then-candidate Barack Obama’s pledge in 2008 to end childhood hunger by 2015. Since that time, many anti-hunger advocates have been left wondering: Where exactly is that comprehensive plan?

I posed that question to Secretary Vilsack, and he suggested that “the plan is already in action” at the USDA, citing expansion and improvement of the WIC program; an expanded SNAP program; education initiatives to help families “stretch SNAP dollars” expansion of summer food programs; and food desert reductions through the Healthy Food Financing Initiative.

“From the earliest moment of a child’s life, we’ve made a concerted effort to expand and improve nutrition programs,” said Vilsack.

I pressed the secretary that there is nevertheless no identifiable administration plan people can look to and recognize as the way to end childhood hunger by 2015—an outline of the tools, the costs, the benefits—a clear vision that people can rally around.

“Part of the challenge—the fact that nobody knows about all of this [that we are doing]—unless Jeff Bridges is sitting at the table, if instead I showed up alone here—you all wouldn’t be here,” said Vilsack. “The Agricultural Department is not able to access the mainstream media the way an Oscar-winning entertainer can.”

But I’m going to hazard a guess that if President Obama held a press conference to lay out his plan on how we could end childhood hunger—or even cut it in half—the media would show up and the nation would pay attention.

Kudos to Share Our Strength for demonstrating the importance of one of the nation’s best tools. The campaign is now building a network of advocates around the country that is contacting schools to ask if and how they are serving breakfast. You can get information about your own community here.

“I like to think there’s a larger potential significance with this campaign, too,” Shore told me. “In this era of such deep polarization, a little bit of progress could inspire more in the larger field of poverty where so many are skeptical that results are possible. Governor O’Malley said to me that ‘small things done well make large things possible.’”

President Obama isn’t the only one who could do more on poverty. Read Greg Kaufmann’s takedown of Jeff Sessions.

Syndicate content
Close